Australian Broker Call *Extra* Edition – Sep 20, 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   ALQ   BMN   CGC (2)   FPH   IEL   LOT   MTS   ORI (2)   PRU   RED   SM1   SPZ  

A2M    A2 MILK COMPANY LIMITED

Dairy – Overnight Price: $4.36

Jarden rates ((A2M)) as Neutral (3) –

Synlait Milk's exclusive English label supply rights have been given notice of cancellation by a2 Milk Co because of performance issues during FY23.

The latter considers the current supply agreement continues a rolling term until either party gives three years notice of termination and on the same pricing terms, so the earliest effective date would be September 2026 and the latest December 2027.

The company also considers Synlait Milk contractually bound to supply up to the same prescribed infant formula volumes per annum.

Jarden assesses, shifting English label to a facility owned by a2 Milk is consistent with a previously articulated plan for when the contract with Synlait Milk ended.

The main surprise is the early cancellation of exclusivity based on FY23 performance. Jarden has a Neutral rating and NZ$5.60 target.

This report was published on September 18, 2023.

Current Price is $4.36. Target price not assessed.
Current consensus price target is $5.32, suggesting upside of 24.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 0.00 cents and EPS of 21.09 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.68.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 20.5, implying annual growth of N/A.
Current consensus DPS estimate is 1.0, implying a prospective dividend yield of 0.2%.
Current consensus EPS estimate suggests the PER is 20.9.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 0.00 cents and EPS of 24.49 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.80.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 25.2, implying annual growth of 22.9%.
Current consensus DPS estimate is 4.8, implying a prospective dividend yield of 1.1%.
Current consensus EPS estimate suggests the PER is 17.0.

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

ALQ    ALS LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $11.70

Jarden rates ((ALQ)) as Upgrade to Buy from Neutral (1) –

Jarden believes a turning point is approaching for ALS Ltd. The acquisition of a 49% stake in Nuvisan delivered headwinds for the life sciences division as the company struggled to replace lost contract revenue amid cost inflation imposts on EBITDA margins.

Options, both call and put, in the company's favour are exerciseable from January 1, 2024 and the broker estimates exercising the call option on the remaining 51% equity stake in Nuvisan could boost underlying EBIT forecast for life sciences by 10% FY25 and drive further accretion for the group.

Following movements in the share price, and in updating global peer valuation multiples, Jarden lifts the rating to Buy from Neutral, believing the current share price provides good risk/reward for investors. Target rises to $13.40 from $11.50.

This report was published on September 18, 2023.

Target price is $13.40 Current Price is $11.70 Difference: $1.7
If ALQ meets the Jarden target it will return approximately 15% (excluding dividends, fees and charges).
Current consensus price target is $11.66, suggesting downside of -0.1%(ex-dividends)
The company's fiscal year ends in March.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 42.30 cents and EPS of 66.10 cents.
At the last closing share price the estimated dividend yield is 3.62%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.70.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 62.7, implying annual growth of 8.7%.
Current consensus DPS estimate is 37.7, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 18.6.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 45.10 cents and EPS of 70.50 cents.
At the last closing share price the estimated dividend yield is 3.85%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.60.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 66.7, implying annual growth of 6.4%.
Current consensus DPS estimate is 40.4, implying a prospective dividend yield of 3.5%.
Current consensus EPS estimate suggests the PER is 17.5.

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

BMN    BANNERMAN ENERGY LIMITED

Uranium – Overnight Price: $2.53

Canaccord Genuity rates ((BMN)) as Initiation of coverage with Speculative Buy (1) –

Bannerman Energy is developing the Etango uranium project in Namibia and Canaccord Genuity initiates coverage with a Speculative Buy rating and $3.33 target.

The broker observes the market is starting to witness the first wave of mine re-starts but is confronted by a -30mlb deficit.

After a decade of underinvestment and material closures such as Ranger and Cominak, the primary supply of uranium is at a 12-year low.

Security of supply and the need for contracting to facilitate development of new mines has been brought to the fore, and recent polling, as well as anecdotal evidence, signal a flurry of contracts have been initiated over the last nine months.

This report was published on September 19, 2023.

Target price is $3.33 Current Price is $2.53 Difference: $0.8
If BMN meets the Canaccord Genuity target it will return approximately 32% (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 7.06 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 35.82.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 6.61 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 38.26.

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

CGC    COSTA GROUP HOLDINGS LIMITED

Agriculture – Overnight Price: $2.86

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

Costa Group has received a lower and final offer from Paine Schwartz Partners at $3.20 a share. Jarden envisages a high probability of the deal proceeding despite the reduction from $3.50, owing to significant downside post the recent update on the company's outlook and weaker domestic pricing in recent weeks.

The broker continues to believe PSP can extract material synergies with respect to technology, genetics and general expertise in agriculture which, coupled with the Costa landholding, creates an attractive proposal. The broker retains an Overweight rating and $3.08 target.

This report was published on September 18, 2023.

Target price is $3.08 Current Price is $2.86 Difference: $0.22
If CGC meets the Jarden target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $3.03, suggesting upside of 5.3%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY23:

Jarden forecasts a full year FY23 EPS of 3.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 79.44.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 5.5, implying annual growth of -24.0%.
Current consensus DPS estimate is 7.6, implying a prospective dividend yield of 2.6%.
Current consensus EPS estimate suggests the PER is 52.4.

Forecast for FY24:

Jarden forecasts a full year FY24 EPS of 7.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 40.28.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 11.6, implying annual growth of 110.9%.
Current consensus DPS estimate is 8.9, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 24.8.

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

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

Paine Schwartz Partners has downwardly revised its offer for Costa Group to $3.20 a share from $3.50 a share, reducing this for any permitted dividend of up to 4c, if declared. The former has also indicated this is the best and final price.

Costa Group is considering the revised offer and will continue to engage regarding terms and conditions. Wilsons observes a reduction in the bid price reflects the recent earnings downgrade and still implies a premium of 45% to the share price prior to PSP acquiring its 14% stake in October 2022.

The broker assesses, while the company has invested in a significant expansion of its productive asset base over the past five years the incremental return on capital has been disappointing. Market Weight retained. Target is $3.05.

This report was published on September 18, 2023.

Target price is $3.05 Current Price is $2.86 Difference: $0.19
If CGC meets the Wilsons target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $3.03, suggesting upside of 5.3%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 22.20 cents and EPS of 15.20 cents.
At the last closing share price the estimated dividend yield is 7.76%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.82.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 5.5, implying annual growth of -24.0%.
Current consensus DPS estimate is 7.6, implying a prospective dividend yield of 2.6%.
Current consensus EPS estimate suggests the PER is 52.4.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 15.00 cents and EPS of 17.40 cents.
At the last closing share price the estimated dividend yield is 5.24%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.44.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 11.6, implying annual growth of 110.9%.
Current consensus DPS estimate is 8.9, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 24.8.

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

FPH    FISHER & PAYKEL HEALTHCARE CORPORATION LIMITED

Medical Equipment & Devices – Overnight Price: $20.20

Jarden rates ((FPH)) as Neutral (3) –

Jarden found the visit to the Mexican manufacturing facility educational, noting Fisher & Paykel Healthcare's management is confident in returning to the targeted long-term gross margin of 65%.

No new therapies or product expansions were announced and nasal high flow (NHF) remains the key consumables growth driver.

The sales force access to hospitals is now back to normal and the company is working with physicians to educate on the wider and less severe use cases for NHF, establishing hospital-specific protocols to ensure ongoing use. Neutral retained.Target is NZ$23.00.

This report was published on September 18, 2023.

Current Price is $20.20. Target price not assessed.
Current consensus price target is $21.00, suggesting upside of 4.6%(ex-dividends)
The company's fiscal year ends in March.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 38.21 cents and EPS of 40.06 cents.
At the last closing share price the estimated dividend yield is 1.89%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 50.43.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 39.8, implying annual growth of N/A.
Current consensus DPS estimate is 34.6, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 50.4.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 39.13 cents and EPS of 53.87 cents.
At the last closing share price the estimated dividend yield is 1.94%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 37.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 50.4, implying annual growth of 26.6%.
Current consensus DPS estimate is 37.2, implying a prospective dividend yield of 1.9%.
Current consensus EPS estimate suggests the PER is 39.8.

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: -0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

IEL    IDP EDUCATION LIMITED

Education & Tuition – Overnight Price: $23.95

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

Goldman Sachs introduces half-yearly estimates to its analysis of IDP Education, maintaining a Buy rating with a $29.65 target based on a discounted cash flow and an uplift of $1.80 to reflect the potential for future synergistic acquisitions.

The broker considers the path to more normal conditions is unclear and relapses of covid could hinder the recovery in international student markets. Other risks include increased competition and political risk in discouraging international students travelling to Australia/UK/Canada.

This report was published on September 19, 2023.

Target price is $29.65 Current Price is $23.95 Difference: $5.7
If IEL meets the Goldman Sachs target it will return approximately 24% (excluding dividends, fees and charges).
Current consensus price target is $27.79, suggesting upside of 17.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 45.00 cents and EPS of 64.00 cents.
At the last closing share price the estimated dividend yield is 1.88%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 37.42.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 62.3, implying annual growth of 16.8%.
Current consensus DPS estimate is 45.6, implying a prospective dividend yield of 1.9%.
Current consensus EPS estimate suggests the PER is 38.0.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 56.00 cents and EPS of 80.00 cents.
At the last closing share price the estimated dividend yield is 2.34%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.94.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 74.3, implying annual growth of 19.3%.
Current consensus DPS estimate is 53.5, implying a prospective dividend yield of 2.3%.
Current consensus EPS estimate suggests the PER is 31.8.

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

LOT    LOTUS RESOURCES LIMITED

Uranium – Overnight Price: $0.28

Canaccord Genuity rates ((LOT)) as Speculative Buy (1) –

Canaccord Genuity notes the independent expert has deemed the Lotus Resources/A-Cap scheme of arrangement fair and reasonable.

The proposed merger combines two highly complementary and synergistic projects, the broker assesses, both located on a similar geological trend under a single African-focused vehicle.

The A-Cap flagship asset is Letlhakane in Botswana and its integration into Lotus Resources should, in the broker's opinion, provide the necessary financial and technical resources to generate momentum. Speculative Buy rating retained. Target rises to $0.39 from $0.36.

This report was published on September 19, 2023.

Target price is $0.39 Current Price is $0.28 Difference: $0.105
If LOT meets the Canaccord Genuity target it will return approximately 37% (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 0.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 35.62.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 0.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 40.71.

Market Sentiment: 1.0
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: $3.67

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

Jarden assesses the AGM update from Metcash was mixed, with food weaker, liquor in line and hardware better than expected. Trends did show a slowdown, although allowing for inflation volumes were flat in August compared with May, the broker points out.

Jarden assesses the valuation undemanding and hardware is well-placed to deliver a positive surprise in terms of margin. The broker calculates the market is currently applying 1x EV/EBIT for the core food business, which is considered too low.

Overweight maintained. Target is raised to $4.40 from $4.30.

This report was published on September 15, 2023.

Target price is $4.40 Current Price is $3.67 Difference: $0.73
If MTS meets the Jarden target it will return approximately 20% (excluding dividends, fees and charges).
Current consensus price target is $4.10, suggesting upside of 11.1%(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 32.60 cents.
At the last closing share price the estimated dividend yield is 6.27%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.26.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 30.3, implying annual growth of 13.0%.
Current consensus DPS estimate is 20.6, implying a prospective dividend yield of 5.6%.
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 33.50 cents.
At the last closing share price the estimated dividend yield is 6.54%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.96.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 29.6, implying annual growth of -2.3%.
Current consensus DPS estimate is 20.9, 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

ORI    ORICA LIMITED

Mining Sector Contracting – Overnight Price: $15.88

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

Goldman Sachs tweaks its modelling to reflect the trading update from Orica. Operating earnings guidance has been reaffirmed for FY23 while the broker lowers FY24 estimates for EBIT by -5% to reflect the turnaround of the ammonia plant at Kooragang Island and slower price realisation.

FY25 estimates are unchanged as the price reset resumes and there is no recurrence of maintenance outages. Buy rating and $19.85 target retained.

This report was published on September 19, 2023.

Target price is $19.85 Current Price is $15.88 Difference: $3.97
If ORI meets the Goldman Sachs target it will return approximately 25% (excluding dividends, fees and charges).
Current consensus price target is $18.00, suggesting upside of 15.8%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 38.00 cents and EPS of 82.00 cents.
At the last closing share price the estimated dividend yield is 2.39%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.37.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 80.6, implying annual growth of 117.4%.
Current consensus DPS estimate is 41.4, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 19.3.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 47.00 cents and EPS of 99.00 cents.
At the last closing share price the estimated dividend yield is 2.96%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.04.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 97.7, implying annual growth of 21.2%.
Current consensus DPS estimate is 49.7, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 15.9.

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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Jarden rates ((ORI)) as Buy (1) –

At the Orica 2023 Sustainability Day updates on September 19 and 20 Jarden expects detail regarding the turnaround of the Kooragang Island ammonia plant.

The broker will also look for commentary about incremental operating expenditure, as the company sources ammonia from third parties in order to continue producing ammonium nitrate at Kooragang during the turnaround.

Jarden envisages declines in thermal coal demand remain a key risk for Orica with decarbonisation trends and ESG pressures having the potential to affect its client base over the longer term.

This is particularly acute for Kooragang Island as it services the thermal coal industry in the Hunter Valley. Buy rating and $17.10 target maintained.

This report was published on September 17, 2023.

Target price is $17.10 Current Price is $15.88 Difference: $1.22
If ORI meets the Jarden target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $18.00, suggesting upside of 15.8%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 39.00 cents and EPS of 77.40 cents.
At the last closing share price the estimated dividend yield is 2.46%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.52.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 80.6, implying annual growth of 117.4%.
Current consensus DPS estimate is 41.4, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 19.3.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 46.20 cents and EPS of 90.90 cents.
At the last closing share price the estimated dividend yield is 2.91%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.47.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 97.7, implying annual growth of 21.2%.
Current consensus DPS estimate is 49.7, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 15.9.

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

PRU    PERSEUS MINING LIMITED

Gold & Silver – Overnight Price: $1.78

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

Perseus Mining has refreshed its life-of-mine plan for Yaoure, extending the life by five years to 2036 and increasing the inventory by 30%. Near-term production guidance is largely unchanged at 250,000 ozpa.

Canaccord Genuity updates its modelling to align with the new plan.

The higher operating expenditure offsets the mine life extensions and results in a -15% decrease in the broker's price target to $2.35 from $2.75.

While the stock trades on attractive multiples, Canaccord Genuity highlights the need to backfill the medium-term production profile to close the gap with peers. Buy rating retained.

This report was published on September 19, 2023.

Target price is $2.35 Current Price is $1.78 Difference: $0.57
If PRU meets the Canaccord Genuity target it will return approximately 32% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 2.00 cents and EPS of 27.00 cents.
At the last closing share price the estimated dividend yield is 1.12%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.59.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 2.00 cents and EPS of 30.00 cents.
At the last closing share price the estimated dividend yield is 1.12%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.93.

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

RED    RED 5 LIMITED

Gold & Silver – Overnight Price: $0.27

Canaccord Genuity rates ((RED)) as Speculative Buy (1) –

Silver Lake Resources ((SLR)) has bought an 11% stake in Red 5, which Canaccord Genuity observes marks its second M&A move to acquire assets in the Leonora region this year, having failed to acquire St Barbara's ((SBM)).

The broker observes it may be difficult for Silver Lake to affect a takeover, if that is its intention, pointing out, in terms of other miner positions, having a 10-20% shareholding does not mean further M&A is imminent.

At a glance the two companies screen similarly in terms of production and cost metrics. Speculative Buy rating and $0.26 target maintained.

This report was published on September 18, 2023.

Target price is $0.26 Current Price is $0.27 Difference: minus $0.005 (current price is over target).
If RED meets the Canaccord Genuity target it will return approximately minus 2% (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

SM1    SYNLAIT MILK LIMITED

Dairy – Overnight Price: $1.14

Jarden rates ((SM1)) as Overweight (2) –

Synlait Milk's exclusive English label supply rights have been given notice of cancellation by a2 Milk Co because of performance issues during FY23.

The latter considers the current supply agreement continues a rolling term until either party gives three years notice of termination and on the same pricing terms, so the earliest effective date would be September 2026 and the latest December 2027.

Jarden assesses, shifting English label to a facility owned by a2 Milk is consistent with a previously articulated plan for when the contract with Synlait Milk ended.

The main surprise is the early cancellation of exclusivity based on FY23 performance. Synlait Milk disputes the right to cancel the exclusivity arrangements and a resolution process for the dispute is underway.

The company has confirmed its FY23 net profit guidance range between a loss of -NZ$5m to a profit of NZ$5m ahead of its results on September 25. This latest announcement is not expected to affect the FY24 result.

Jarden retains an Overweight rating and NZ$2.35 target.

This report was published on September 18, 2023.

Current Price is $1.14. Target price not assessed.
Current consensus price target is $1.90, suggesting upside of 66.7%(ex-dividends)
The company's fiscal year ends in July.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 0.00 cents and EPS of 1.75 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 65.14.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1.2, 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 95.0.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 0.00 cents and EPS of 13.08 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.72.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 12.0, implying annual growth of 900.0%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 9.5.

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

SPZ    SMART PARKING LIMITED

Hardware & Equipment – Overnight Price: $0.34

Canaccord Genuity rates ((SPZ)) as Initiation of coverage with Buy (1) –

Smart Parking, a technology-enabled parking management provider operating in Australasia and Europe, has sizeable growth ambitions and impressive unit-level economics, according to Canaccord Genuity.

The broker highlights the company's strong presence in the core UK market where it has a top-five position by market share. Smart Parking is in the early stages of expanding in Germany and New Zealand.

The business is profitable, high-growth, with elevated incremental EBITDA margins and the broker initiates coverage with a Buy rating and $0.45 target.

This report was published on September 18, 2023.

Target price is $0.45 Current Price is $0.34 Difference: $0.11
If SPZ meets the Canaccord Genuity target it will return approximately 32% (excluding dividends, fees and charges).

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of 2.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.14.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 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 10.97.

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

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