Australian Broker Call *Extra* Edition – Jun 29, 2023

This story features A2 MILK COMPANY LIMITED, and other companies. For more info SHARE ANALYSIS: A2M

An additional news report on the recommendation, valuation, forecast and opinion changes and updates for ASX-listed equities.

In addition to The Australian Broker Call Report, which is published and updated daily (Mon-Fri), FNArena has now added The Australian Broker Call *Extra* Edition, featuring additional sources of research and insights on ASX-listed stocks, also enlarging the number of stocks that make up the FNArena universe.

One key difference is the *Extra* Edition will not be updated daily, but merely "regularly" depending on availability of suitable quality content. As such, the *Extra* Edition tries to build a bridge between daily updates via the Australian Broker Call Report and ad hoc news stories, that are not always timely for investors hungry for the next information update.

Investors using the *Extra* Edition as a source of input for their own share market research should thus take into account that information after publication may not be up to date, or yet awaiting another update by FNArena's team of journalists.

Similar to The Australian Broker Call Report, this *Extra* Edition includes concise but limited reviews of research recently published by Stockbrokers and other experts, which should be considered as information concerning likely market behaviour rather than advice on the securities mentioned. Do not act on the contents of this Report without first reading the important information included at the end of this Report.

The Australian Broker Call *Extra* Edition is a summary that has been prepared independently of the sources identified. Readers will check the full text of the recommendations and consult a Licenced Advisor before making any investment decision.

The copyright of this Report is owned by the publisher. Readers will not copy, forward or disseminate this Report to any other person. For more vital information about the sources included, see the bottom of this Report.

COMPANIES DISCUSSED IN THIS ISSUE

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

A2M   ADH   APM   AX1   BGA   BKL   CCX   CDP   CIP   CNI   COF   CQE   CQR   CWP   DXC   DXI   ECF   GDF   GDI   GOZ   HDN   HPG   INA   JLG   LOV   MTS (2)   NPR   NSR   OBL   QAL   RGN   TNE   TPW   TRS   UNI   WPR   ZIP  

A2M    A2 MILK COMPANY LIMITED

Dairy – Overnight Price: $4.82

Goldman Sachs rates ((A2M)) as Sell (5) –

As Sophie Carran is leaving, Lisa Deng assumes coverage of a2 Milk Co. Goldman Sachs retains a Sell rating and $4.90 or NZ$5.25 target.

This report was published on June 26, 2023.

Target price is $4.80 Current Price is $4.82 Difference: minus $0.02 (current price is over target).
If A2M meets the Goldman Sachs target it will return approximately minus 0% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $5.84, suggesting upside of 21.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 EPS of 16.48 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.25.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.1, 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 26.6.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 EPS of 21.06 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.89.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 23.3, implying annual growth of 28.7%.
Current consensus DPS estimate is 5.2, implying a prospective dividend yield of 1.1%.
Current consensus EPS estimate suggests the PER is 20.7.

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

ADH    ADAIRS LIMITED

Furniture & Renovation – Overnight Price: $1.47

Goldman Sachs – Cessation of coverage

This report was published on June 26, 2023.

Forecast for FY23:

Current consensus EPS estimate is 22.2, implying annual growth of -15.8%.
Current consensus DPS estimate is 14.3, implying a prospective dividend yield of 9.8%.
Current consensus EPS estimate suggests the PER is 6.6.

Forecast for FY24:

Current consensus EPS estimate is 19.2, implying annual growth of -13.5%.
Current consensus DPS estimate is 14.0, implying a prospective dividend yield of 9.6%.
Current consensus EPS estimate suggests the PER is 7.6.

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

APM    APM HUMAN SERVICES INTERNATIONAL LIMITED

Healthcare – Overnight Price: $2.13

Goldman Sachs – Cessation of coverage

This report was published on June 26, 2023.

Forecast for FY23:

Current consensus EPS estimate is 17.3, implying annual growth of 286.2%.
Current consensus DPS estimate is 10.2, implying a prospective dividend yield of 4.8%.
Current consensus EPS estimate suggests the PER is 12.3.

Forecast for FY24:

Current consensus EPS estimate is 21.4, implying annual growth of 23.7%.
Current consensus DPS estimate is 12.1, implying a prospective dividend yield of 5.7%.
Current consensus EPS estimate suggests the PER is 10.0.

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

AX1    ACCENT GROUP LIMITED

Apparel & Footwear – Overnight Price: $1.62

Goldman Sachs – Cessation of coverage

This report was published on June 26, 2023.

Forecast for FY23:

Current consensus EPS estimate is 14.7, implying annual growth of 153.0%.
Current consensus DPS estimate is 16.3, implying a prospective dividend yield of 10.0%.
Current consensus EPS estimate suggests the PER is 11.1.

Forecast for FY24:

Current consensus EPS estimate is 13.8, implying annual growth of -6.1%.
Current consensus DPS estimate is 11.6, implying a prospective dividend yield of 7.1%.
Current consensus EPS estimate suggests the PER is 11.8.

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

BGA    BEGA CHEESE LIMITED

Dairy – Overnight Price: $3.11

Goldman Sachs – Cessation of coverage

This report was published on June 26, 2023.

Forecast for FY23:

Current consensus EPS estimate is 8.1, implying annual growth of 1.5%.
Current consensus DPS estimate is 8.1, implying a prospective dividend yield of 2.6%.
Current consensus EPS estimate suggests the PER is 38.4.

Forecast for FY24:

Current consensus EPS estimate is 9.9, implying annual growth of 22.2%.
Current consensus DPS estimate is 7.1, implying a prospective dividend yield of 2.3%.
Current consensus EPS estimate suggests the PER is 31.4.

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

BKL    BLACKMORES LIMITED

Health & Nutrition – Overnight Price: $94.32

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

As Sophie Carran is leaving, Goldman Sachs is suspending coverage of Blackmores. Accordingly, ratings, targets and estimates are no longer to be relied on.

This report was published on June 26, 2023.

Current Price is $94.32. Target price not assessed.
Current consensus price target is $91.75, suggesting downside of -2.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Current consensus EPS estimate is 224.6, implying annual growth of 42.2%.
Current consensus DPS estimate is 147.9, implying a prospective dividend yield of 1.6%.
Current consensus EPS estimate suggests the PER is 42.0.

Forecast for FY24:

Current consensus EPS estimate is 270.8, implying annual growth of 20.6%.
Current consensus DPS estimate is 175.6, implying a prospective dividend yield of 1.9%.
Current consensus EPS estimate suggests the PER is 34.8.

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

CCX    CITY CHIC COLLECTIVE LIMITED

Apparel & Footwear – Overnight Price: $0.34

Goldman Sachs – Cessation of coverage

This report was published on June 26, 2023.

Forecast for FY23:

Current consensus EPS estimate is -9.4, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY24:

Current consensus EPS estimate is -0.9, implying annual growth of N/A.
Current consensus DPS estimate is 0.5, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is N/A.

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

CDP    CARINDALE PROPERTY TRUST

REITs – Overnight Price: $4.08

Moelis rates ((CDP)) as Buy (1) –

Bond markets now imply an RBA cash rate of 4.6% by December, up from 4.1%, observes Moelis, before gradually declining to 4.2% by November 2024.

Given the rising interest rate environment, the broker weighs the impact upon small-and mid-cap real estate exposures under its research coverage. On average, FY24 and FY25 earnings per unit (EPU) fall by -2.0% and -2.4%, respectively.

In general terms, the analysts note the REITs most impacted by higher interest rates have some of the following characteristics: higher gearing, less hedging, lower cap rates and fixed rental increases. Landlords lacking bargaining power with tenants may also suffer from not passing on inflation.

For Carindale Property Trust, the broker lowers its target to $6.26 from $6.61 and maintains its Buy rating.

This report was published on June 26, 2023.

Target price is $6.26 Current Price is $4.08 Difference: $2.18
If CDP meets the Moelis target it will return approximately 53% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 26.30 cents and EPS of 34.40 cents.
At the last closing share price the estimated dividend yield is 6.45%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.86.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 27.30 cents and EPS of 34.10 cents.
At the last closing share price the estimated dividend yield is 6.69%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.96.

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

CIP    CENTURIA INDUSTRIAL REIT

REITs – Overnight Price: $3.17

Moelis rates ((CIP)) as Buy (1) –

Bond markets now imply an RBA cash rate of 4.6% by December, up from 4.1%, observes Moelis, before gradually declining to 4.2% by November 2024.

Given the rising interest rate environment, the broker weighs the impact upon small-and mid-cap real estate exposures under its research coverage. On average, FY24 and FY25 earnings per unit (EPU) fall by -2.0% and -2.4%, respectively.

In general terms, the analysts note the REITs most impacted by higher interest rates have some of the following characteristics: higher gearing, less hedging, lower cap rates and fixed rental increases. Landlords lacking bargaining power with tenants may also suffer from not passing on inflation.

For Centuria Industrial REIT, the broker retains its Buy rating and lowers its target to $3.64 from $3.67.

This report was published on June 26, 2023.

Target price is $3.64 Current Price is $3.17 Difference: $0.47
If CIP meets the Moelis target it will return approximately 15% (excluding dividends, fees and charges).
Current consensus price target is $3.40, suggesting upside of 7.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 16.00 cents and EPS of 17.10 cents.
At the last closing share price the estimated dividend yield is 5.05%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.54.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.0, implying annual growth of -71.6%.
Current consensus DPS estimate is 16.0, implying a prospective dividend yield of 5.0%.
Current consensus EPS estimate suggests the PER is 18.6.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 16.10 cents and EPS of 17.60 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 18.01.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.8, implying annual growth of -1.2%.
Current consensus DPS estimate is 15.9, implying a prospective dividend yield of 5.0%.
Current consensus EPS estimate suggests the PER is 18.9.

Market Sentiment: 0.2
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: $1.71

Moelis rates ((CNI)) as Buy (1) –

Bond markets now imply an RBA cash rate of 4.6% by December, up from 4.1%, observes Moelis, before gradually declining to 4.2% by November 2024.

Given the rising interest rate environment, the broker weighs the impact upon small-and mid-cap real estate exposures under its research coverage. On average, FY24 and FY25 earnings per unit (EPU) fall by -2.0% and -2.4%, respectively.

In general terms, the analysts note the REITs most impacted by higher interest rates have some of the following characteristics: higher gearing, less hedging, lower cap rates and fixed rental increases. Landlords lacking bargaining power with tenants may also suffer from not passing on inflation.

For Centuria Capital, the broker retains its Buy rating and lowers its target to $2.25 from $2.57.

This report was published on June 26, 2023.

Target price is $2.25 Current Price is $1.71 Difference: $0.54
If CNI meets the Moelis target it will return approximately 32% (excluding dividends, fees and charges).
Current consensus price target is $2.00, suggesting upside of 16.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 11.60 cents and EPS of 14.40 cents.
At the last closing share price the estimated dividend yield is 6.78%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.87.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 14.6, implying annual growth of N/A.
Current consensus DPS estimate is 11.6, implying a prospective dividend yield of 6.8%.
Current consensus EPS estimate suggests the PER is 11.7.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 11.60 cents and EPS of 14.50 cents.
At the last closing share price the estimated dividend yield is 6.78%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.79.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.0, implying annual growth of 2.7%.
Current consensus DPS estimate is 12.2, implying a prospective dividend yield of 7.1%.
Current consensus EPS estimate suggests the PER is 11.4.

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

COF    CENTURIA OFFICE REIT

REITs – Overnight Price: $1.42

Moelis rates ((COF)) as Buy (1) –

Bond markets now imply an RBA cash rate of 4.6% by December, up from 4.1%, observes Moelis, before gradually declining to 4.2% by November 2024.

Given the rising interest rate environment, the broker weighs the impact upon small-and mid-cap real estate exposures under its research coverage. On average, FY24 and FY25 earnings per unit (EPU) fall by -2.0% and -2.4%, respectively.

In general terms, the analysts note the REITs most impacted by higher interest rates have some of the following characteristics: higher gearing, less hedging, lower cap rates and fixed rental increases. Landlords lacking bargaining power with tenants may also suffer from not passing on inflation.

The broker lowers its target for Centuria Office REIT to $2.08 from $2.22 and retains its Buy rating.

This report was published on June 26, 2023.

Target price is $2.08 Current Price is $1.42 Difference: $0.66
If COF meets the Moelis target it will return approximately 46% (excluding dividends, fees and charges).
Current consensus price target is $1.83, suggesting upside of 28.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 14.10 cents and EPS of 15.80 cents.
At the last closing share price the estimated dividend yield is 9.93%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.99.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.9, implying annual growth of -20.1%.
Current consensus DPS estimate is 14.1, implying a prospective dividend yield of 9.9%.
Current consensus EPS estimate suggests the PER is 8.9.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 14.00 cents and EPS of 15.80 cents.
At the last closing share price the estimated dividend yield is 9.86%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.99.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.5, implying annual growth of -2.5%.
Current consensus DPS estimate is 13.5, implying a prospective dividend yield of 9.5%.
Current consensus EPS estimate suggests the PER is 9.2.

Market Sentiment: 0.7
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: $2.98

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

Bond markets now imply an RBA cash rate of 4.6% by December, up from 4.1%, observes Moelis, before gradually declining to 4.2% by November 2024.

Given the rising interest rate environment, the broker weighs the impact upon small-and mid-cap real estate exposures under its research coverage. On average, FY24 and FY25 earnings per unit (EPU) fall by -2.0% and -2.4%, respectively.

In general terms, the analysts note the REITs most impacted by higher interest rates have some of the following characteristics: higher gearing, less hedging, lower cap rates and fixed rental increases. Landlords lacking bargaining power with tenants may also suffer from not passing on inflation.

The broker raises its its rating for Charter Hall Social Infrastructure REIT to Buy from Hold and lowers its target to $3.29 from $3.40.

This report was published on June 26, 2023.

Target price is $3.29 Current Price is $2.98 Difference: $0.31
If CQE meets the Moelis target it will return approximately 10% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 17.20 cents and EPS of 16.30 cents.
At the last closing share price the estimated dividend yield is 5.77%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.28.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 17.20 cents and EPS of 16.80 cents.
At the last closing share price the estimated dividend yield is 5.77%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.74.

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: $3.69

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

Bond markets now imply an RBA cash rate of 4.6% by December, up from 4.1%, observes Moelis, before gradually declining to 4.2% by November 2024.

Given the rising interest rate environment, the broker weighs the impact upon small-and mid-cap real estate exposures under its research coverage. On average, FY24 and FY25 earnings per unit (EPU) fall by -2.0% and -2.4%, respectively.

In general terms, the analysts note the REITs most impacted by higher interest rates have some of the following characteristics: higher gearing, less hedging, lower cap rates and fixed rental increases. Landlords lacking bargaining power with tenants may also suffer from not passing on inflation.

The broker raises its its rating for Charter Hall Retail REIT to Buy from Hold and lowers its target to $4.10 from $4.27.

This report was published on June 26, 2023.

Target price is $4.10 Current Price is $3.69 Difference: $0.41
If CQR meets the Moelis target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $4.19, suggesting upside of 13.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 26.00 cents and EPS of 28.70 cents.
At the last closing share price the estimated dividend yield is 7.05%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.86.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 28.7, implying annual growth of -75.0%.
Current consensus DPS estimate is 25.9, implying a prospective dividend yield of 7.0%.
Current consensus EPS estimate suggests the PER is 12.9.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 25.30 cents and EPS of 28.00 cents.
At the last closing share price the estimated dividend yield is 6.86%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.18.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 28.0, implying annual growth of -2.4%.
Current consensus DPS estimate is 25.8, implying a prospective dividend yield of 7.0%.
Current consensus EPS estimate suggests the PER is 13.2.

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

CWP    CEDAR WOODS PROPERTIES LIMITED

Infra & Property Developers – Overnight Price: $5.03

Moelis rates ((CWP)) as Buy (1) –

Bond markets now imply an RBA cash rate of 4.6% by December, up from 4.1%, observes Moelis, before gradually declining to 4.2% by November 2024.

Given the rising interest rate environment, the broker weighs the impact upon small-and mid-cap real estate exposures under its research coverage. On average, FY24 and FY25 earnings per unit (EPU) fall by -2.0% and -2.4%, respectively.

In general terms, the analysts note the REITs most impacted by higher interest rates have some of the following characteristics: higher gearing, less hedging, lower cap rates and fixed rental increases. Landlords lacking bargaining power with tenants may also suffer from not passing on inflation.

The broker retains its Buy rating for Cedar Woods Properties and lowers its target to $5.80 from $5.93.

This report was published on June 26, 2023.

Target price is $5.80 Current Price is $5.03 Difference: $0.77
If CWP meets the Moelis target it will return approximately 15% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 27.50 cents and EPS of 37.20 cents.
At the last closing share price the estimated dividend yield is 5.47%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.52.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 30.00 cents and EPS of 48.30 cents.
At the last closing share price the estimated dividend yield is 5.96%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.41.

Market Sentiment: 0.5
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: $2.62

Moelis rates ((DXC)) as Buy (1) –

Bond markets now imply an RBA cash rate of 4.6% by December, up from 4.1%, observes Moelis, before gradually declining to 4.2% by November 2024.

Given the rising interest rate environment, the broker weighs the impact upon small-and mid-cap real estate exposures under its research coverage. On average, FY24 and FY25 earnings per unit (EPU) fall by -2.0% and -2.4%, respectively.

In general terms, the analysts note the REITs most impacted by higher interest rates have some of the following characteristics: higher gearing, less hedging, lower cap rates and fixed rental increases. Landlords lacking bargaining power with tenants may also suffer from not passing on inflation.

The broker retains its Buy rating for Dexus Convenience Retail REIT and lowers its target to $3.53 from $3.69.

This report was published on June 26, 2023.

Target price is $3.53 Current Price is $2.62 Difference: $0.91
If DXC meets the Moelis target it will return approximately 35% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 21.60 cents and EPS of 21.70 cents.
At the last closing share price the estimated dividend yield is 8.24%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.07.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 21.60 cents and EPS of 21.70 cents.
At the last closing share price the estimated dividend yield is 8.24%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.07.

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: $2.66

Moelis rates ((DXI)) as Buy (1) –

Bond markets now imply an RBA cash rate of 4.6% by December, up from 4.1%, observes Moelis, before gradually declining to 4.2% by November 2024.

Given the rising interest rate environment, the broker weighs the impact upon small-and mid-cap real estate exposures under its research coverage. On average, FY24 and FY25 earnings per unit (EPU) fall by -2.0% and -2.4%, respectively.

In general terms, the analysts note the REITs most impacted by higher interest rates have some of the following characteristics: higher gearing, less hedging, lower cap rates and fixed rental increases. Landlords lacking bargaining power with tenants may also suffer from not passing on inflation.

The broker retains its Buy rating for Dexus Industria REIT and lowers its target to $3.24 from $3.30.

This report was published on June 26, 2023.

Target price is $3.24 Current Price is $2.66 Difference: $0.58
If DXI meets the Moelis target it will return approximately 22% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 16.40 cents and EPS of 17.20 cents.
At the last closing share price the estimated dividend yield is 6.17%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.47.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 15.80 cents and EPS of 17.00 cents.
At the last closing share price the estimated dividend yield is 5.94%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.65.

Market Sentiment: 1.0
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: $0.85

Moelis rates ((ECF)) as Buy (1) –

Bond markets now imply an RBA cash rate of 4.6% by December, up from 4.1%, observes Moelis, before gradually declining to 4.2% by November 2024.

Given the rising interest rate environment, the broker weighs the impact upon small-and mid-cap real estate exposures under its research coverage. On average, FY24 and FY25 earnings per unit (EPU) fall by -2.0% and -2.4%, respectively.

In general terms, the analysts note the REITs most impacted by higher interest rates have some of the following characteristics: higher gearing, less hedging, lower cap rates and fixed rental increases. Landlords lacking bargaining power with tenants may also suffer from not passing on inflation.

The broker retains its Buy rating for Elanor Commercial Property Fund and lowers its target to $1.12 from $1.14.

This report was published on June 26, 2023.

Target price is $1.12 Current Price is $0.85 Difference: $0.27
If ECF meets the Moelis target it will return approximately 32% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 9.40 cents and EPS of 11.10 cents.
At the last closing share price the estimated dividend yield is 11.06%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.66.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 9.40 cents and EPS of 10.70 cents.
At the last closing share price the estimated dividend yield is 11.06%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.94.

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

GDF    GARDA PROPERTY GROUP

REITs – Overnight Price: $1.28

Moelis rates ((GDF)) as Buy (1) –

Bond markets now imply an RBA cash rate of 4.6% by December, up from 4.1%, observes Moelis, before gradually declining to 4.2% by November 2024.

Given the rising interest rate environment, the broker weighs the impact upon small-and mid-cap real estate exposures under its research coverage. On average, FY24 and FY25 earnings per unit (EPU) fall by -2.0% and -2.4%, respectively.

In general terms, the analysts note the REITs most impacted by higher interest rates have some of the following characteristics: higher gearing, less hedging, lower cap rates and fixed rental increases. Landlords lacking bargaining power with tenants may also suffer from not passing on inflation.

The broker retains its Buy rating for Garda Property and lowers its target to $1.77 from $1.80.

This report was published on June 26, 2023.

Target price is $1.77 Current Price is $1.28 Difference: $0.49
If GDF meets the Moelis target it will return approximately 38% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 7.20 cents and EPS of 7.10 cents.
At the last closing share price the estimated dividend yield is 5.63%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.03.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 7.20 cents and EPS of 6.90 cents.
At the last closing share price the estimated dividend yield is 5.63%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.55.

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

GDI    GDI PROPERTY GROUP

REITs – Overnight Price: $0.67

Moelis rates ((GDI)) as Buy (1) –

Bond markets now imply an RBA cash rate of 4.6% by December, up from 4.1%, observes Moelis, before gradually declining to 4.2% by November 2024.

Given the rising interest rate environment, the broker weighs the impact upon small-and mid-cap real estate exposures under its research coverage. On average, FY24 and FY25 earnings per unit (EPU) fall by -2.0% and -2.4%, respectively.

In general terms, the analysts note the REITs most impacted by higher interest rates have some of the following characteristics: higher gearing, less hedging, lower cap rates and fixed rental increases. Landlords lacking bargaining power with tenants may also suffer from not passing on inflation.

The broker retains its Buy rating for GDI Property and lowers its target to $1.17 from $1.25.

This report was published on June 26, 2023.

Target price is $1.17 Current Price is $0.67 Difference: $0.505
If GDI meets the Moelis target it will return approximately 76% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 5.00 cents and EPS of 5.20 cents.
At the last closing share price the estimated dividend yield is 7.52%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.79.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 5.50 cents and EPS of 7.50 cents.
At the last closing share price the estimated dividend yield is 8.27%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.87.

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

GOZ    GROWTHPOINT PROPERTIES AUSTRALIA

Infra & Property Developers – Overnight Price: $2.86

Moelis rates ((GOZ)) as Buy (1) –

Bond markets now imply an RBA cash rate of 4.6% by December, up from 4.1%, observes Moelis, before gradually declining to 4.2% by November 2024.

Given the rising interest rate environment, the broker weighs the impact upon small-and mid-cap real estate exposures under its research coverage. On average, FY24 and FY25 earnings per unit (EPU) fall by -2.0% and -2.4%, respectively.

In general terms, the analysts note the REITs most impacted by higher interest rates have some of the following characteristics: higher gearing, less hedging, lower cap rates and fixed rental increases. Landlords lacking bargaining power with tenants may also suffer from not passing on inflation.

The broker retains its Buy rating and $3.80 target for Growthpoint Properties Australia.

This report was published on June 26, 2023.

Target price is $3.80 Current Price is $2.86 Difference: $0.94
If GOZ meets the Moelis target it will return approximately 33% (excluding dividends, fees and charges).
Current consensus price target is $3.63, suggesting upside of 26.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 21.40 cents and EPS of 26.70 cents.
At the last closing share price the estimated dividend yield is 7.48%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.71.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 24.4, implying annual growth of -59.0%.
Current consensus DPS estimate is 21.4, implying a prospective dividend yield of 7.5%.
Current consensus EPS estimate suggests the PER is 11.7.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 21.40 cents and EPS of 24.60 cents.
At the last closing share price the estimated dividend yield is 7.48%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.63.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 24.1, implying annual growth of -1.2%.
Current consensus DPS estimate is 21.3, implying a prospective dividend yield of 7.4%.
Current consensus EPS estimate suggests the PER is 11.9.

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

HDN    HOMECO DAILY NEEDS REIT

REITs – Overnight Price: $1.21

Moelis rates ((HDN)) as Buy (1) –

Bond markets now imply an RBA cash rate of 4.6% by December, up from 4.1%, observes Moelis, before gradually declining to 4.2% by November 2024.

Given the rising interest rate environment, the broker weighs the impact upon small-and mid-cap real estate exposures under its research coverage. On average, FY24 and FY25 earnings per unit (EPU) fall by -2.0% and -2.4%, respectively.

In general terms, the analysts note the REITs most impacted by higher interest rates have some of the following characteristics: higher gearing, less hedging, lower cap rates and fixed rental increases. Landlords lacking bargaining power with tenants may also suffer from not passing on inflation.

The broker retains its Buy rating for HomeCo Daily Needs REIT and lowers its target to $1.43 from $1.46.

This report was published on June 26, 2023.

Target price is $1.43 Current Price is $1.21 Difference: $0.225
If HDN meets the Moelis target it will return approximately 19% (excluding dividends, fees and charges).
Current consensus price target is $1.39, suggesting upside of 15.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 8.30 cents and EPS of 8.60 cents.
At the last closing share price the estimated dividend yield is 6.89%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.01.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.7, implying annual growth of -69.0%.
Current consensus DPS estimate is 8.2, implying a prospective dividend yield of 6.8%.
Current consensus EPS estimate suggests the PER is 13.9.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 8.20 cents and EPS of 8.20 cents.
At the last closing share price the estimated dividend yield is 6.80%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.70.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.5, implying annual growth of -2.3%.
Current consensus DPS estimate is 8.3, implying a prospective dividend yield of 6.9%.
Current consensus EPS estimate suggests the PER is 14.2.

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

HPG    HIPAGES GROUP HOLDINGS LIMITED

Online media & mobile platforms – Overnight Price: $0.75

Goldman Sachs – Cessation of coverage

This report was published on June 26, 2023.

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

INA    INGENIA COMMUNITIES GROUP

Aged Care & Seniors – Overnight Price: $4.04

Moelis rates ((INA)) as Buy (1) –

Bond markets now imply an RBA cash rate of 4.6% by December, up from 4.1%, observes Moelis, before gradually declining to 4.2% by November 2024.

Given the rising interest rate environment, the broker weighs the impact upon small-and mid-cap real estate exposures under its research coverage. On average, FY24 and FY25 earnings per unit (EPU) fall by -2.0% and -2.4%, respectively.

In general terms, the analysts note the REITs most impacted by higher interest rates have some of the following characteristics: higher gearing, less hedging, lower cap rates and fixed rental increases. Landlords lacking bargaining power with tenants may also suffer from not passing on inflation.

The broker retains its Buy rating for Ingenia Communities and lowers its target to $4.41 from $4.51.

This report was published on June 26, 2023.

Target price is $4.41 Current Price is $4.04 Difference: $0.37
If INA meets the Moelis target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $4.46, suggesting upside of 10.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 10.40 cents and EPS of 19.20 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 21.04.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 19.7, implying annual growth of -26.1%.
Current consensus DPS estimate is 10.0, implying a prospective dividend yield of 2.5%.
Current consensus EPS estimate suggests the PER is 20.5.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 12.20 cents and EPS of 25.00 cents.
At the last closing share price the estimated dividend yield is 3.02%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.16.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 23.4, implying annual growth of 18.8%.
Current consensus DPS estimate is 10.8, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 17.3.

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

JLG    JOHNS LYNG GROUP LIMITED

Building Products & Services – Overnight Price: $5.21

Goldman Sachs – Cessation of coverage

This report was published on June 26, 2023.

Forecast for FY23:

Current consensus EPS estimate is 19.1, implying annual growth of 84.7%.
Current consensus DPS estimate is 9.0, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 27.3.

Forecast for FY24:

Current consensus EPS estimate is 20.7, implying annual growth of 8.4%.
Current consensus DPS estimate is 9.8, implying a prospective dividend yield of 1.9%.
Current consensus EPS estimate suggests the PER is 25.2.

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

LOV    LOVISA HOLDINGS LIMITED

Retailing – Overnight Price: $19.03

Goldman Sachs – Cessation of coverage

This report was published on June 26, 2023.

Forecast for FY23:

Current consensus EPS estimate is 67.6, implying annual growth of 24.4%.
Current consensus DPS estimate is 60.7, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 28.2.

Forecast for FY24:

Current consensus EPS estimate is 82.9, implying annual growth of 22.6%.
Current consensus DPS estimate is 69.3, implying a prospective dividend yield of 3.6%.
Current consensus EPS estimate suggests the PER is 23.0.

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

MTS    METCASH LIMITED

Food, Beverages & Tobacco – Overnight Price: $3.73

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

Metcash reported FY23 earnings that were slightly below Goldman Sachs estimates. When adding back Project Horizon costs underlying EBIT was slightly ahead of estimates.

Several indicators from guidance show challenges remain in FY24, including negative volumes in food and increased employee expenses.

On the positive side, hardware growth in the first seven weeks of FY24 was 20%, largely stemming from acquisitions as like-for-like sales were almost flat. Goldman Sachs retains a Neutral rating and raises the target to $3.70 from $3.50.

This report was published on June 27, 2023.

Target price is $3.70 Current Price is $3.73 Difference: minus $0.03 (current price is over target).
If MTS meets the Goldman Sachs target it will return approximately minus 1% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $4.10, suggesting upside of 9.9%(ex-dividends)
The company's fiscal year ends in April.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 19.00 cents and EPS of 27.00 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 13.81.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 30.5, implying annual growth of 13.7%.
Current consensus DPS estimate is 21.1, implying a prospective dividend yield of 5.7%.
Current consensus EPS estimate suggests the PER is 12.2.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 20.00 cents and EPS of 29.00 cents.
At the last closing share price the estimated dividend yield is 5.36%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.86.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 29.9, implying annual growth of -2.0%.
Current consensus DPS estimate is 21.2, implying a prospective dividend yield of 5.7%.
Current consensus EPS estimate suggests the PER is 12.5.

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

---

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

Jarden highlights a solid FY23 result from Metcash, with all divisions ahead of expectations and the trading update stronger than anticipated.

While operating forecasts are unchanged the broker's estimate for underlying net profit is reduced because of materially higher interest costs.

The outlook appears mixed, as while food momentum and hardware are positive the cost of doing business is up and interest costs materially higher.

The stock is undemanding in terms of valuation and the broker retains an Overweight rating, with the target edging down to $4.30 from $4.40.

This report was published on June 26, 2023.

Target price is $4.30 Current Price is $3.73 Difference: $0.57
If MTS meets the Jarden target it will return approximately 15% (excluding dividends, fees and charges).
Current consensus price target is $4.10, suggesting upside of 9.9%(ex-dividends)
The company's fiscal year ends in April.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 23.00 cents and EPS of 32.50 cents.
At the last closing share price the estimated dividend yield is 6.17%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.48.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 30.5, implying annual growth of 13.7%.
Current consensus DPS estimate is 21.1, implying a prospective dividend yield of 5.7%.
Current consensus EPS estimate suggests the PER is 12.2.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 24.00 cents and EPS of 33.30 cents.
At the last closing share price the estimated dividend yield is 6.43%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.20.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 29.9, implying annual growth of -2.0%.
Current consensus DPS estimate is 21.2, implying a prospective dividend yield of 5.7%.
Current consensus EPS estimate suggests the PER is 12.5.

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

NPR    NEWMARK PROPERTY REIT

REITs – Overnight Price: $1.27

Moelis rates ((NPR)) as Buy (1) –

Bond markets now imply an RBA cash rate of 4.6% by December, up from 4.1%, observes Moelis, before gradually declining to 4.2% by November 2024.

Given the rising interest rate environment, the broker weighs the impact upon small-and mid-cap real estate exposures under its research coverage. On average, FY24 and FY25 earnings per unit (EPU) fall by -2.0% and -2.4%, respectively.

In general terms, the analysts note the REITs most impacted by higher interest rates have some of the following characteristics: higher gearing, less hedging, lower cap rates and fixed rental increases. Landlords lacking bargaining power with tenants may also suffer from not passing on inflation.

The broker retains its Buy rating for Newmark Property REIT and lowers its target to $1.60 from $1.68.

This report was published on June 26, 2023.

Target price is $1.60 Current Price is $1.27 Difference: $0.325
If NPR meets the Moelis target it will return approximately 25% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 9.00 cents and EPS of 7.70 cents.
At the last closing share price the estimated dividend yield is 7.06%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.56.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 7.70 cents and EPS of 7.80 cents.
At the last closing share price the estimated dividend yield is 6.04%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.35.

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

NSR    NATIONAL STORAGE REIT

REITs – Overnight Price: $2.40

Moelis rates ((NSR)) as Hold (3) –

Bond markets now imply an RBA cash rate of 4.6% by December, up from 4.1%, observes Moelis, before gradually declining to 4.2% by November 2024.

Given the rising interest rate environment, the broker weighs the impact upon small-and mid-cap real estate exposures under its research coverage. On average, FY24 and FY25 earnings per unit (EPU) fall by -2.0% and -2.4%, respectively.

In general terms, the analysts note the REITs most impacted by higher interest rates have some of the following characteristics: higher gearing, less hedging, lower cap rates and fixed rental increases. Landlords lacking bargaining power with tenants may also suffer from not passing on inflation.

The broker retains its Hold rating for National Storage REIT and lowers its target to $2.41 from $2.44.

This report was published on June 26, 2023.

Target price is $2.41 Current Price is $2.40 Difference: $0.01
If NSR meets the Moelis target it will return approximately 0% (excluding dividends, fees and charges).
Current consensus price target is $2.29, suggesting downside of -4.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 11.00 cents and EPS of 11.50 cents.
At the last closing share price the estimated dividend yield is 4.58%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.87.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 11.5, implying annual growth of -77.9%.
Current consensus DPS estimate is 10.8, implying a prospective dividend yield of 4.5%.
Current consensus EPS estimate suggests the PER is 20.9.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 11.10 cents and EPS of 12.00 cents.
At the last closing share price the estimated dividend yield is 4.63%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 11.2, implying annual growth of -2.6%.
Current consensus DPS estimate is 10.6, implying a prospective dividend yield of 4.4%.
Current consensus EPS estimate suggests the PER is 21.4.

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

OBL    OMNI BRIDGEWAY LIMITED

Diversified Financials – Overnight Price: $2.59

Goldman Sachs – Cessation of coverage

This report was published on June 26, 2023.

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

QAL    QUALITAS LIMITED

Wealth Management & Investments – Overnight Price: $2.65

Goldman Sachs – Cessation of coverage

This report was published on June 26, 2023.

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

RGN    REGION GROUP

REITs – Overnight Price: $2.34

Moelis rates ((RGN)) as Buy (1) –

Bond markets now imply an RBA cash rate of 4.6% by December, up from 4.1%, observes Moelis, before gradually declining to 4.2% by November 2024.

Given the rising interest rate environment, the broker weighs the impact upon small-and mid-cap real estate exposures under its research coverage. On average, FY24 and FY25 earnings per unit (EPU) fall by -2.0% and -2.4%, respectively.

In general terms, the analysts note the REITs most impacted by higher interest rates have some of the following characteristics: higher gearing, less hedging, lower cap rates and fixed rental increases. Landlords lacking bargaining power with tenants may also suffer from not passing on inflation.

The broker retains its Buy rating for Region Group and lowers its target to $2.75 from $2.85.

This report was published on June 26, 2023.

Target price is $2.75 Current Price is $2.34 Difference: $0.41
If RGN meets the Moelis target it will return approximately 18% (excluding dividends, fees and charges).
Current consensus price target is $2.47, suggesting upside of 5.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 15.20 cents and EPS of 16.90 cents.
At the last closing share price the estimated dividend yield is 6.50%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.85.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.2, implying annual growth of -63.2%.
Current consensus DPS estimate is 15.2, implying a prospective dividend yield of 6.5%.
Current consensus EPS estimate suggests the PER is 14.4.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 14.40 cents and EPS of 16.30 cents.
At the last closing share price the estimated dividend yield is 6.15%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.36.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.9, implying annual growth of -1.9%.
Current consensus DPS estimate is 14.8, implying a prospective dividend yield of 6.3%.
Current consensus EPS estimate suggests the PER is 14.7.

Market Sentiment: 0.2
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: $15.44

Goldman Sachs rates ((TNE)) as Upgrade to Buy from Neutral (1) –

Goldman Sachs highlights the defensive nature of TechnologyOne's core end markets with growing IT expenditure in the public sector supported by revenue streams, including council rates and government funding.

Over the last 2 years the broker observes the business has demonstrated improving rates of underlying growth, as it shifts legacy customers to the cloud.

This is coupled with improved business momentum in the UK and confidence has increased in the ability for the company to sustain 10-15% annual recurring revenue growth.

Goldman Sachs upgrades to Buy from Neutral and raises the target to $18.30 from $16.25.

This report was published on June 26, 2023.

Target price is $18.30 Current Price is $15.44 Difference: $2.86
If TNE meets the Goldman Sachs target it will return approximately 19% (excluding dividends, fees and charges).
Current consensus price target is $14.84, suggesting downside of -3.9%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 19.40 cents and EPS of 31.20 cents.
At the last closing share price the estimated dividend yield is 1.26%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 49.49.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 30.7, implying annual growth of 11.6%.
Current consensus DPS estimate is 18.1, implying a prospective dividend yield of 1.2%.
Current consensus EPS estimate suggests the PER is 50.3.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 23.50 cents and EPS of 37.80 cents.
At the last closing share price the estimated dividend yield is 1.52%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 40.85.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 34.8, implying annual growth of 13.4%.
Current consensus DPS estimate is 20.4, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 44.4.

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

TPW    TEMPLE & WEBSTER GROUP LIMITED

Furniture & Renovation – Overnight Price: $5.38

Goldman Sachs – Cessation of coverage

This report was published on June 26, 2023.

Forecast for FY23:

Current consensus EPS estimate is 5.1, implying annual growth of -48.6%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 105.5.

Forecast for FY24:

Current consensus EPS estimate is 7.4, implying annual growth of 45.1%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 72.7.

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

TRS    REJECT SHOP LIMITED

Household & Personal Products – Overnight Price: $4.40

Goldman Sachs – Cessation of coverage

This report was published on June 26, 2023.

Forecast for FY23:

Current consensus EPS estimate is 23.3, implying annual growth of 13.0%.
Current consensus DPS estimate is 4.0, implying a prospective dividend yield of 0.9%.
Current consensus EPS estimate suggests the PER is 18.9.

Forecast for FY24:

Current consensus EPS estimate is 32.0, implying annual growth of 37.3%.
Current consensus DPS estimate is 12.5, implying a prospective dividend yield of 2.8%.
Current consensus EPS estimate suggests the PER is 13.8.

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

UNI    UNIVERSAL STORE HOLDINGS LIMITED

Apparel & Footwear – Overnight Price: $2.88

Goldman Sachs – Cessation of coverage

This report was published on June 26, 2023.

Forecast for FY23:

Current consensus EPS estimate is 34.3, implying annual growth of 13.4%.
Current consensus DPS estimate is 23.4, implying a prospective dividend yield of 8.1%.
Current consensus EPS estimate suggests the PER is 8.4.

Forecast for FY24:

Current consensus EPS estimate is 33.1, implying annual growth of -3.5%.
Current consensus DPS estimate is 21.6, implying a prospective dividend yield of 7.5%.
Current consensus EPS estimate suggests the PER is 8.7.

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

WPR    WAYPOINT REIT LIMITED

REITs – Overnight Price: $2.66

Moelis rates ((WPR)) as Downgrade to Hold from Buy (3) –

Bond markets now imply an RBA cash rate of 4.6% by December, up from 4.1%, observes Moelis, before gradually declining to 4.2% by November 2024.

Given the rising interest rate environment, the broker weighs the impact upon small-and mid-cap real estate exposures under its research coverage. On average, FY24 and FY25 earnings per unit (EPU) fall by -2.0% and -2.4%, respectively.

In general terms, the analysts note the REITs most impacted by higher interest rates have some of the following characteristics: higher gearing, less hedging, lower cap rates and fixed rental increases. Landlords lacking bargaining power with tenants may also suffer from not passing on inflation.

The broker lowers its rating for Waypoint REIT to Hold from Buy and reduces its target to $2.84 from $2.99.

This report was published on June 26, 2023.

Target price is $2.84 Current Price is $2.66 Difference: $0.18
If WPR meets the Moelis target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $2.74, suggesting upside of 3.0%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 16.40 cents and EPS of 16.50 cents.
At the last closing share price the estimated dividend yield is 6.17%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.12.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.5, implying annual growth of -13.2%.
Current consensus DPS estimate is 16.5, implying a prospective dividend yield of 6.2%.
Current consensus EPS estimate suggests the PER is 16.1.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 16.90 cents and EPS of 17.00 cents.
At the last closing share price the estimated dividend yield is 6.35%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.65.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.8, implying annual growth of 1.8%.
Current consensus DPS estimate is 16.8, implying a prospective dividend yield of 6.3%.
Current consensus EPS estimate suggests the PER is 15.8.

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

ZIP    ZIP CO LIMITED

Business & Consumer Credit – Overnight Price: $0.42

Jarden rates ((ZIP)) as Neutral (3) –

Zip Co has completed an equity placement and note conversion and Jarden updates estimates to reflect the transaction. The FY24 EBTDA estimate is up 20% while earnings per share are up 9.4%.

The broker observes the company has taken swift action to close its loss-making businesses to move to break even.

Caution prevails amid rising rates and credit risks from the macro economic environment. Jarden awaits catalysts such as improved profitability, further cost reductions and fee repricing alongside sustained lower churn.

Neutral maintained. Target is reduced to $0.50 from $0.70.

This report was published on June 26, 2023.

Target price is $0.50 Current Price is $0.42 Difference: $0.075
If ZIP meets the Jarden target it will return approximately 18% (excluding dividends, fees and charges).
Current consensus price target is $0.79, suggesting upside of 85.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 41.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 1.02.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -28.3, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 8.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 4.89.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -13.0, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

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

---

Disclaimer:
The content of this information does in no way reflect the opinions of FNArena, or of its journalists. In fact we don't have any opinion about the stock market, its value, future direction or individual shares. FNArena solely reports about what the main experts in the market note, believe and comment on. By doing so we believe we provide experienced, 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.

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

Click to view our Glossary of Financial Terms