Australian Broker Call *Extra* Edition – Jan 30, 2024

This story features AUSTRALIAN CLINICAL LABS LIMITED, and other companies. For more info SHARE ANALYSIS: ACL

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)

ACL   COE   CXO   HLS   IEL   JDO   KAR (2)   NAN (2)   QOR   SHL   TCL   THL   VEA  

ACL    AUSTRALIAN CLINICAL LABS LIMITED

Healthcare services – Overnight Price: $3.07

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

Eighteen months have elapsed and Goldman Sachs still awaits a recovery in base business volume across pathology companies under coverage. The recovery is needed to help offset the sharp decline in covid testing and compensate for ongoing cost pressures.

There are positive signs (across most geographies) of improving hospital volumes and access to physicians, which the broker suggests could relieve some of the referral bottlenecks restricting volume growth.

Goldman reinstates coverage on Australian Clinical Labs after a period of research restriction with a Neutral rating and $3.30 target. It's expected the company will return to a period of steady market share gains.

This report was published on January 24, 2024.

Target price is $3.30 Current Price is $3.07 Difference: $0.23
If ACL meets the Goldman Sachs target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $3.37, suggesting upside of 9.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 10.30 cents and EPS of 17.80 cents.
At the last closing share price the estimated dividend yield is 3.36%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.25.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.0, implying annual growth of 0.6%.
Current consensus DPS estimate is 13.2, implying a prospective dividend yield of 4.3%.
Current consensus EPS estimate suggests the PER is 17.1.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 13.10 cents and EPS of 21.80 cents.
At the last closing share price the estimated dividend yield is 4.27%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.08.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 20.9, implying annual growth of 16.1%.
Current consensus DPS estimate is 14.6, implying a prospective dividend yield of 4.8%.
Current consensus EPS estimate suggests the PER is 14.7.

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

COE    COOPER ENERGY LIMITED

Crude Oil – Overnight Price: $0.14

Jarden rates ((COE)) as Neutral (3) –

Jarden assesses a positive 2Q operational update by Cooper Energy with production numbers in line and FY24 guidance unchanged.

While the broker's unchanged 15c target includes a -20% discount for equity raising risk, management (on a post-result conference call) stated it saw no need to raise equity, with the company having sufficient funding in place.

The Neutral rating is maintained.

This report was published on January 24, 2024.

Target price is $0.15 Current Price is $0.14 Difference: $0.015
If COE meets the Jarden target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $0.20, suggesting upside of 45.7%(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 minus 0.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 45.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 0.7, 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 19.3.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 0.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 67.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1.1, implying annual growth of 57.1%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 12.3.

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

CXO    CORE LITHIUM LIMITED

New Battery Elements – Overnight Price: $0.19

Wilsons rates ((CXO)) as Underweight (5) –

As Core Lithium's 2Q lithium costs (before inventory movements) were around $2000/t, it's clear to Wilsons why operations were
not sustainable (and suspended earlier in January) as spodumene prices fell.

Although somewhat irrelevant following the suspension, suggests the analyst, spodumene concentrate shipments of around 31kt were in line with the broker's forecast.

Underweight. Target 45c.

This report was published on January 24, 2024.

Target price is $0.45 Current Price is $0.19 Difference: $0.26
If CXO meets the Wilsons target it will return approximately 137% (excluding dividends, fees and charges).
Current consensus price target is $0.25, suggesting upside of 29.8%(ex-dividends)

Forecast for FY24:

Current consensus EPS estimate is 3.0, implying annual growth of 341.2%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 6.3.

Forecast for FY25:

Current consensus EPS estimate is 0.6, implying annual growth of -80.0%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 31.7.

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

HLS    HEALIUS LIMITED

Healthcare services – Overnight Price: $1.37

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

Eighteen months have elapsed and Goldman Sachs still awaits a recovery in base business volume across pathology companies under coverage. The recovery is needed to help offset the sharp decline in covid testing and compensate for ongoing cost pressures.

There are positive signs (across most geographies) of improving hospital volumes and access to physicians, which the broker suggests could relieve some of the referral bottlenecks restricting volume growth.

Goldman reinstates coverage on Healius after a period of research restriction with a Neutral rating and $1.40 target.

Management expects 6-8% pathology growth in the 2H, compared to 6% in Q1, and believes efficiency and revenue initiatives will help deliver earnings (EBIT) of $15m in the 2H.

This report was published on January 24, 2024.

Target price is $1.40 Current Price is $1.37 Difference: $0.03
If HLS meets the Goldman Sachs target it will return approximately 2% (excluding dividends, fees and charges).
Current consensus price target is $1.83, suggesting upside of 33.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs 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 48.93.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 2.8, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 48.9.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 4.10 cents and EPS of 6.80 cents.
At the last closing share price the estimated dividend yield is 2.99%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.15.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 7.9, implying annual growth of 182.1%.
Current consensus DPS estimate is 3.6, implying a prospective dividend yield of 2.6%.
Current consensus EPS estimate suggests the PER is 17.3.

Market Sentiment: 0.0
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: $19.87

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

The Canadian government has announced it will temporally cap permits available to international students to 360,000 in 2024, while permits will also be capped in 2025 with the number of available permits to be determined later in the year.

For IDP Education, Goldman Sachs is assuming student placements to grow 43%, 9% and 13% through to FY26. It explains FY24 growth should prove largely insulated with the largest placement having occurred in September 2023.

The broker had warned of a potential cap being implemented, although notes the extent of the cap was greater than expected. Goldman Sachs believes IDP Education's focus on bachelor degree or higher placements should protect it from greater impacts.

The Buy rating and target price of $27.60 are retained.

This report was published on January 24, 2024.

Target price is $27.60 Current Price is $19.87 Difference: $7.73
If IEL meets the Goldman Sachs target it will return approximately 39% (excluding dividends, fees and charges).
Current consensus price target is $26.29, suggesting upside of 32.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 44.30 cents and EPS of 63.30 cents.
At the last closing share price the estimated dividend yield is 2.23%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.39.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 61.9, implying annual growth of 16.0%.
Current consensus DPS estimate is 45.5, implying a prospective dividend yield of 2.3%.
Current consensus EPS estimate suggests the PER is 32.1.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 52.80 cents and EPS of 75.00 cents.
At the last closing share price the estimated dividend yield is 2.66%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.49.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 71.4, implying annual growth of 15.3%.
Current consensus DPS estimate is 53.9, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 27.8.

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

JDO    JUDO CAPITAL HOLDINGS LIMITED

Business & Consumer Credit – Overnight Price: $1.13

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

Judo Capital delivered a 32% beat to Goldman Sachs' first half profit expectations, as per pre-released results. The company reports net profits before tax of $67m, an increase on the $54m reported in the previous half. 

Goldman Sachs attributes the beat to lower than expected expenses and higher revenue. The company is guiding to second half profits of $40-45m, or full year profits of $107-112m. An improving net interest margin is expected to be a key driver.

The Buy rating is retained and the target price increases to $1.63 from $1.58.

This report was published on January 24, 2024.

Target price is $1.63 Current Price is $1.13 Difference: $0.5
If JDO meets the Goldman Sachs target it will return approximately 44% (excluding dividends, fees and charges).
Current consensus price target is $1.17, suggesting upside of 3.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 0.00 cents and EPS of 6.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.38.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 6.6, implying annual growth of -0.6%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 17.1.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 0.00 cents and EPS of 8.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.99.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 7.7, implying annual growth of 16.7%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 14.7.

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

KAR    KAROON ENERGY LIMITED

Crude Oil – Overnight Price: $1.96

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

Following complications with the gas injection dehydration unit at the Cidade de Itajai floating production, storage and offloading facility (FPSO) within the Bauna project, Karoon Energy has announced a -7% production downgrade over the full year.

The company is now guiding to production of 11.2-13.5m barrels of oil equivalent, anticipating production will be restored in the fourth quarter. Goldman Sachs explains the production revision is disappointing, but will be deferred rather than lost.

The Buy rating is retained and the target price decreases to $2.41 from $2.68.

This report was published on January 24, 2024.

Target price is $2.41 Current Price is $1.96 Difference: $0.455
If KAR meets the Goldman Sachs target it will return approximately 23% (excluding dividends, fees and charges).
Current consensus price target is $2.76, suggesting upside of 41.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 0.00 cents and EPS of 60.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 3.23.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 69.3, 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 2.8.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 0.00 cents and EPS of 49.91 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 3.92.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 57.6, implying annual growth of -16.9%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 3.4.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.9
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

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Jarden rates ((KAR)) as Upgrade to Buy from Overweight (1) –

Even though management at Karoon Energy lowered 2024 production guidance to between 7.2-9.0mmbl, due to production problems in Brazil, Jarden upgrades its rating to Buy from Overweight on valuation.

The upgrade follows share price falls over the last three months partly due to the larger-than-anticipated equity raising to facilitate the company's entry into the Gulf of Mexico, explain the analysts. Oil prices have also declined and now there are problems in Brazil.

In positive news, the broker notes production in Brazil can be restored in late-2024 at a less-than-expected cost of -$5-10m, restoring up to 1m barrels of production in 2025.

The target price is increased to $2.40 from $2.35.

This report was published on January 24, 2024.

Target price is $2.40 Current Price is $1.96 Difference: $0.445
If KAR meets the Jarden target it will return approximately 23% (excluding dividends, fees and charges).
Current consensus price target is $2.76, suggesting upside of 41.3%(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 31.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.29.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 69.3, 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 2.8.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 0.00 cents and EPS of 25.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.61.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 57.6, implying annual growth of -16.9%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 3.4.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.9
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

NAN    NANOSONICS LIMITED

Medical Equipment & Devices – Overnight Price: $2.97

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

A preliminary first half trading update from Nanosonics shows the company is anticipating revenues of $79.6m. As per Goldman Sachs, this is -16% below consensus expectations, and a -4.3% year-on-year decline.

The broker points out gross margins are up 80 basis points on a mix shift from lower capital sales, but operating expenditure has grown at double-digit rates, up 12%. This leaves first half earnings likely down -72% year-on-year, and -62% below consensus.

Goldman Sachs particularly points to further slowing of installation growth as concerning for the sustainability of revenue growth. With new installations declining -16%  over FY23, and already run-rating a further -15% down in FY23, the broker is concerned about what will sustain consumables sales.

The Sell rating is retained and the target price decreases to $3.00 from $3.80.

This report was published on January 24, 2024.

Target price is $3.00 Current Price is $2.97 Difference: $0.03
If NAN meets the Goldman Sachs target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $3.75, suggesting upside of 26.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 0.00 cents and EPS of 3.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 99.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 3.5, implying annual growth of -47.0%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 84.9.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 0.00 cents and EPS of 4.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 74.25.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 6.4, implying annual growth of 82.9%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 46.4.

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

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

Capital budgeting pressure within hospitals is exacerbating the natural slowing of Nanosonics' Trophon capital placements and upgrades, explains Wilsons.

Preliminary 2H results showed a -17% miss for revenue compared to the broker's forecast largely due to longer sales cycles for both new and upgrade capital units.

The analysts suggest Nanosonics will face a tough upcoming year should growth for Trophon weaken further while management simultaneously incurs development expenditure to launch the new Coris product on the international stage.

Management withdrew FY24 revenue growth guidance, and promised a revised outlook at the formal 1H results release on February 26.

The rating is downgraded to Market weight from Overweight and the target cut to $3.95 from $5.46.

This report was published on January 24, 2024.

Target price is $3.95 Current Price is $2.97 Difference: $0.98
If NAN meets the Wilsons target it will return approximately 33% (excluding dividends, fees and charges).
Current consensus price target is $3.75, suggesting upside of 26.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of 2.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 123.75.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 3.5, implying annual growth of -47.0%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 84.9.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 0.00 cents and EPS of 3.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 82.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 6.4, implying annual growth of 82.9%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 46.4.

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

QOR    QORIA LIMITED

Software & Services – Overnight Price: $0.23

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

Outperformance in the UK was largely behind a strong, but largely expected, annual recurring revenue (ARR) outcome for Qoria in the 2Q, according to Wilsons.

ARR rose by 2% quarter-on-quarter, with both the Education and Consumer segments growing well, note the analysts. In particular, UK Education benefited from regulatory tailwinds helping student monitoring deals to close quickly.

Recent changes to the Keeping Children Safe in Education (KCSIE) regulation has increased obligations on UK schools, explains the broker, resulting in a material lift in orders and the sales pipeline.

Overweight rating. Target 37c.

This report was published on January 24, 2024.

Target price is $0.37 Current Price is $0.23 Difference: $0.14
If QOR meets the Wilsons target it will return approximately 61% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 3.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 6.97.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 2.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 10.45.

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

SHL    SONIC HEALTHCARE LIMITED

Healthcare services – Overnight Price: $31.80

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

Eighteen months have elapsed and Goldman Sachs still awaits a recovery in base business volume across pathology companies under coverage. The recovery is needed to help offset the sharp decline in covid testing and compensate for ongoing cost pressures.

There are positive signs (across most geographies) of improving hospital volumes and access to physicians, which the broker suggests could relieve some of the referral bottlenecks restricting volume growth.

Goldman Sachs' target price for Sonic Healthcare increases to $29.70 from $29.00 after incorporating forecast earnings changes and marking-to-market for peer and sector multiples. The Sell rating is maintained.

This report was published on January 24, 2024.

Target price is $29.70 Current Price is $31.80 Difference: minus $2.1 (current price is over target).
If SHL meets the Goldman Sachs target it will return approximately minus 7% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $34.46, suggesting upside of 8.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 EPS of 134.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.73.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 138.1, implying annual growth of -5.3%.
Current consensus DPS estimate is 104.1, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 23.0.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 EPS of 154.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.65.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 156.8, implying annual growth of 13.5%.
Current consensus DPS estimate is 112.1, implying a prospective dividend yield of 3.5%.
Current consensus EPS estimate suggests the PER is 20.3.

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

TCL    TRANSURBAN GROUP LIMITED

Infrastructure & Utilities – Overnight Price: $13.28

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

Transurban Group shares have rallied 11% since last November, when Goldman Sachs lifted its rating on the stock.

The broker explains the positive performance is likely a reflection of the macro outlook, coupled with organic traffic growth as WestConnex matures on top of inorganic growth following a decision on the EastLink acquisition by the ACCC.

With a new CEO and CFO, Goldman Sachs expects strategic updates won't be forthcoming until the investor day in early May. It expects no traffic projection or cost adjustments for WestConnex, but more detail on the near-term pipeline should be provided.

The Neutral rating and target price of $13.10 are retained.

This report was published on January 24, 2024.

Target price is $13.10 Current Price is $13.28 Difference: minus $0.18 (current price is over target).
If TCL 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 $14.02, suggesting upside of 5.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 63.00 cents and EPS of 16.00 cents.
At the last closing share price the estimated dividend yield is 4.74%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 83.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 26.6, implying annual growth of 1178.8%.
Current consensus DPS estimate is 63.0, implying a prospective dividend yield of 4.7%.
Current consensus EPS estimate suggests the PER is 49.9.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 65.00 cents and EPS of 10.00 cents.
At the last closing share price the estimated dividend yield is 4.89%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 132.80.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 32.7, implying annual growth of 22.9%.
Current consensus DPS estimate is 65.2, implying a prospective dividend yield of 4.9%.
Current consensus EPS estimate suggests the PER is 40.6.

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

THL    TOURISM HOLDINGS LIMITED

Travel, Leisure & Tourism – Overnight Price: $3.40

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

Management at Tourism Holdings Rentals is guided by a strong strategic rationale, according to Wilsons, in acquiring Camperagent, the leading recreational vehicle dealership in Adelaide, for -$11.9m in cash.

Compared to Tourism Holdings Rentals' existing dealership in Adelaide, Camperagent’s sales volumes are several times greater, notes the analyst. It's thought the deal could speed-up the company's vertically-integrated build/rent/sell model in Australia.

The Overweight rating is retained and the target reduced to $5.06 from $5.29 as the minor earnings benefit from the Camperagent transaction is offset by an increase in the broker's assumed risk-free rate to 4% from 3.5%. 

This report was published on January 24, 2024.

Target price is $5.06 Current Price is $3.40 Difference: $1.66
If THL meets the Wilsons target it will return approximately 49% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 15.63 cents and EPS of 34.87 cents.
At the last closing share price the estimated dividend yield is 4.60%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.75.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 18.50 cents and EPS of 41.07 cents.
At the last closing share price the estimated dividend yield is 5.44%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.28.

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

VEA    VIVA ENERGY GROUP LIMITED

Crude Oil – Overnight Price: $3.47

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

A -24% refining margin miss from Viva Energy's Geelong operations in the fourth quarter drove a full year result that was softer than Goldman Sachs had anticipated, with the company reporting full year earnings of $710m.

Geelong reported weaker refining margins and volumes in the fourth quarter, largely a result of an extended outage in the third quarter and subsequent ongoing intermediate feedstock sales, explains Goldman Sachs. The broker assumes this has now been resolved.

The broker expects 10% earnings growth over 2024, and 1% and 3% earnings growth in subsequent years.

The Neutral rating is retained and the target price decreases to $3.40 from $3.43.

This report was published on January 24, 2024.

Target price is $3.40 Current Price is $3.47 Difference: minus $0.07 (current price is over target).
If VEA meets the Goldman Sachs target it will return approximately minus 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $3.44, suggesting downside of -1.0%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 15.00 cents and EPS of 21.00 cents.
At the last closing share price the estimated dividend yield is 4.32%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.52.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 20.8, implying annual growth of -37.5%.
Current consensus DPS estimate is 14.3, implying a prospective dividend yield of 4.1%.
Current consensus EPS estimate suggests the PER is 16.7.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 19.00 cents and EPS of 34.00 cents.
At the last closing share price the estimated dividend yield is 5.48%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.21.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 31.0, implying annual growth of 49.0%.
Current consensus DPS estimate is 18.1, implying a prospective dividend yield of 5.2%.
Current consensus EPS estimate suggests the PER is 11.2.

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

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