Australian Broker Call *Extra* Edition – Feb 01, 2024

This story features ATLANTIC LITHIUM LIMITED., and other companies. For more info SHARE ANALYSIS: A11

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)

A11   AMA   BPT   BRG (2)   CCP   CKF   COL   CTD   DMP   EDV   FLT   GMD   GOR   HUB   HVN   JBH   LRK   M7T   MAD   MTS   NWL   PMV   PPS   RMD   STX   SUL   TWE   WES   WOW  

A11    ATLANTIC LITHIUM LIMITED.

New Battery Elements – Overnight Price: $0.38

Canaccord Genuity rates ((A11)) as Speculative Buy (1) –

With Atlantic Lithium's previously non-binding agreement with Ghanian sovereign wealth fund MIIF now closed, the fund has been issued around 10m warrants at US$0.36. The closure also sees the agreement for a further US$28m investment turn binding.

Atlantic Lithium has announced the completion of the first stage of its offtake financing partnering process, and will now undertake the second stage which will include more detailed due diligence.

Canaccord Genuity sees this investment as important as it will cover a significant portion of the required construction finance, as well as aligning the interests of the company and the Ghanian government. 

The Speculative Buy rating is retained and the target price decreases to $1.20 from $1.40.

This report was published on January 25, 2024.

Target price is $1.20 Current Price is $0.38 Difference: $0.823
If A11 meets the Canaccord Genuity target it will return approximately 218% (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 0.00 cents and EPS of minus 1.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 34.27.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 37.70.

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

AMA    AMA GROUP LIMITED

Automobiles & Components – Overnight Price: $0.07

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

Canaccord Genuity has described AMA Group's second quarter result as reflecting "understood seasonality" for the business. The company reported quarterly earnings of $4.8m, bringing first half earnings to $20.3m. 

With AMA Group typically delivering its stronger earnings in the second half, the full year guidance of $42-49m has been retained.

The company expects to be well progressed with refinancing by late February, when it will release interim results, having launched a refinancing process in November for a $130m debt facility and $50m in convertible bonds.

The Buy rating and target price of 16 cents are retained.

This report was published on January 24, 2024.

Target price is $0.16 Current Price is $0.07 Difference: $0.089
If AMA meets the Canaccord Genuity target it will return approximately 125% (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 0.00 cents and EPS of 12.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 0.59.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of 73.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 0.10.

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

BPT    BEACH ENERGY LIMITED

Crude Oil – Overnight Price: $1.66

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

Beach Energy's December-quarter market update surprised with sales volumes well above expectations while an -$721m impairment was anticipated.

Guidance range tightening for production and capex remained within Wilsons' expectations. The broker has only made minor amendments to forecasts.

Target remains $1.84 with an Overweight rating.

This report was published on January 29, 2024.

Target price is $1.84 Current Price is $1.66 Difference: $0.18
If BPT meets the Wilsons target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $1.81, suggesting upside of 8.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 5.00 cents and EPS of 18.20 cents.
At the last closing share price the estimated dividend yield is 3.01%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.12.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.9, implying annual growth of -3.9%.
Current consensus DPS estimate is 4.7, implying a prospective dividend yield of 2.8%.
Current consensus EPS estimate suggests the PER is 9.8.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 8.00 cents and EPS of 28.00 cents.
At the last closing share price the estimated dividend yield is 4.82%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.93.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 28.4, implying annual growth of 68.0%.
Current consensus DPS estimate is 10.1, implying a prospective dividend yield of 6.1%.
Current consensus EPS estimate suggests the PER is 5.8.

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

BRG    BREVILLE GROUP LIMITED

Household & Personal Products – Overnight Price: $27.34

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

Prior to the February reporting season, Goldman Sachs adjusts earnings forecasts for Australian Consumer/Retail stocks under coverage in the household goods and staples space.

The analysts take into account three main themes: retail sales data suggests strength for household goods; supermarket volumes will likely remain strong; and potential for four turnaround stories.

The broker's target for Breville Group rises by 17.5% to $30.20 due to a combination of 2-3% higher forecast US segment sales and  higher APAC region sales estimates. Buy.

This report was published on January 25, 2024.

Target price is $30.20 Current Price is $27.34 Difference: $2.86
If BRG meets the Goldman Sachs target it will return approximately 10% (excluding dividends, fees and charges).
Current consensus price target is $27.18, suggesting downside of -0.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 34.00 cents and EPS of 86.20 cents.
At the last closing share price the estimated dividend yield is 1.24%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.72.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 84.7, implying annual growth of 9.7%.
Current consensus DPS estimate is 32.7, implying a prospective dividend yield of 1.2%.
Current consensus EPS estimate suggests the PER is 32.3.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 38.00 cents and EPS of 96.50 cents.
At the last closing share price the estimated dividend yield is 1.39%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 97.0, implying annual growth of 14.5%.
Current consensus DPS estimate is 37.3, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 28.2.

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

Taking into account observations from competitor DeLonghi's latest market update, with an eye on the upcoming February reporting season, Wilsons has pulled back its price target for Breville Group by -3.1% to $24.90, which also becomes the new price target.

A lift in the risk-free rate used in the modeling is predominantly responsible for the small decline.

Breville Group is scheduled to report 1H24 results on the 13th of February 2024.

The Market Weight rating is maintained.

This report was published on January 29, 2024.

Target price is $24.90 Current Price is $27.34 Difference: minus $2.44 (current price is over target).
If BRG meets the Wilsons target it will return approximately minus 9% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $27.18, suggesting downside of -0.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 35.00 cents and EPS of 88.70 cents.
At the last closing share price the estimated dividend yield is 1.28%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.82.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 84.7, implying annual growth of 9.7%.
Current consensus DPS estimate is 32.7, implying a prospective dividend yield of 1.2%.
Current consensus EPS estimate suggests the PER is 32.3.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 40.00 cents and EPS of 102.10 cents.
At the last closing share price the estimated dividend yield is 1.46%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.78.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 97.0, implying annual growth of 14.5%.
Current consensus DPS estimate is 37.3, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 28.2.

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

CCP    CREDIT CORP GROUP LIMITED

Business & Consumer Credit – Overnight Price: $17.21

Canaccord Genuity rates ((CCP)) as Upgrade to Buy from Hold (1) –

Canaccord Genuity sees limited scope for a beat to first half market expectations from Credit Corp, but sees potential for improved debt purchasing conditions, a building payers book to debt ledger balance, and improved collection efficiency to "tip the scale" in Credit Corp's favour.

The broker points out the US market supply dynamic appears to be improving at pace, in contrast to the Australian and New Zealand markets. While pricing recovery is underway, it expects there is still material upside potential should market dynamics allow.

The rating is upgraded to Buy from Hold and the target price increases to $20.00 from $13.20.

This report was published on January 24, 2024.

Target price is $20.00 Current Price is $17.21 Difference: $2.79
If CCP meets the Canaccord Genuity target it will return approximately 16% (excluding dividends, fees and charges).
Current consensus price target is $17.50, suggesting upside of 1.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 48.00 cents and EPS of 120.00 cents.
At the last closing share price the estimated dividend yield is 2.79%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.34.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 74.9, implying annual growth of -44.2%.
Current consensus DPS estimate is 43.3, implying a prospective dividend yield of 2.5%.
Current consensus EPS estimate suggests the PER is 23.0.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 67.00 cents and EPS of 134.00 cents.
At the last closing share price the estimated dividend yield is 3.89%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.84.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 119.1, implying annual growth of 59.0%.
Current consensus DPS estimate is 60.3, implying a prospective dividend yield of 3.5%.
Current consensus EPS estimate suggests the PER is 14.5.

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

CKF    COLLINS FOODS LIMITED

Food, Beverages & Tobacco – Overnight Price: $12.10

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

New Zealand-based Restaurant Brands has confirmed slowing sales for its operations in Australia and Wilsons suggests the read-through for Collins Foods could translate into further and larger weakness than indicated in the November market update.

The Overweight rating is retained as well as the target price of $13.41.

This report was published on January 25, 2024.

Target price is $13.41 Current Price is $12.10 Difference: $1.31
If CKF meets the Wilsons target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $12.36, suggesting upside of 2.1%(ex-dividends)
The company's fiscal year ends in May.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 27.50 cents and EPS of 49.40 cents.
At the last closing share price the estimated dividend yield is 2.27%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.49.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 50.3, implying annual growth of 362.3%.
Current consensus DPS estimate is 28.7, implying a prospective dividend yield of 2.4%.
Current consensus EPS estimate suggests the PER is 24.1.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 35.50 cents and EPS of 59.10 cents.
At the last closing share price the estimated dividend yield is 2.93%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.47.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 64.8, implying annual growth of 28.8%.
Current consensus DPS estimate is 35.7, implying a prospective dividend yield of 3.0%.
Current consensus EPS estimate suggests the PER is 18.7.

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

COL    COLES GROUP LIMITED

Food, Beverages & Tobacco – Overnight Price: $15.91

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

Prior to the February reporting season, Goldman Sachs adjusts earnings forecasts for Australian Consumer/Retail stocks under coverage in the household goods and staples space.

The analysts take into account three main themes: retail sales data suggests strength for household goods; supermarket volumes will likely remain strong; and potential for four turnaround stories.

The target for Coles Group falls by -4.8% to $14. Sell. Supermarket volumes will remain strong, given reversion to in-home dining, believes the broker.

Relative to Woolworths Group, Goldman sees a higher fixed cost spend with supply chain projects onboarding, and less ancillary revenue streams to insulate against gross profit margin pressure.

This report was published on January 25, 2024.

Target price is $14.00 Current Price is $15.91 Difference: minus $1.91 (current price is over target).
If COL meets the Goldman Sachs target it will return approximately minus 12% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $16.46, suggesting upside of 3.4%(ex-dividends)

Forecast for FY24:

Current consensus EPS estimate is 76.0, implying annual growth of -9.2%.
Current consensus DPS estimate is 63.7, implying a prospective dividend yield of 4.0%.
Current consensus EPS estimate suggests the PER is 20.9.

Forecast for FY25:

Current consensus EPS estimate is 82.6, implying annual growth of 8.7%.
Current consensus DPS estimate is 68.7, implying a prospective dividend yield of 4.3%.
Current consensus EPS estimate suggests the PER is 19.3.

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

CTD    CORPORATE TRAVEL MANAGEMENT LIMITED

Travel, Leisure & Tourism – Overnight Price: $20.48

Goldman Sachs rates ((CTD)) as Downgrade to Neutral from Buy (3) –

Prior to the February reporting season, Goldman Sachs adjusts earnings forecasts for Australian Consumer/Retail stocks under coverage in the household goods and staples space.

The analysts take into account three main themes: retail sales data suggests strength for household goods; supermarket volumes will likely remain strong; and potential for four turnaround stories.

For Corporate Travel Management, the broker downgrades its rating to Neutral from Buy due to a 24% share price rally since mid-October last year, and a plateau in US corporate travel (the long-term positive story remains intact).

The target rises to $20.70 from $20.60.

This report was published on January 25, 2024.

Target price is $20.70 Current Price is $20.48 Difference: $0.22
If CTD meets the Goldman Sachs target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $22.85, suggesting upside of 11.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 51.00 cents and EPS of 103.00 cents.
At the last closing share price the estimated dividend yield is 2.49%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.88.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 105.9, implying annual growth of 99.5%.
Current consensus DPS estimate is 49.6, implying a prospective dividend yield of 2.4%.
Current consensus EPS estimate suggests the PER is 19.3.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 63.00 cents and EPS of 126.00 cents.
At the last closing share price the estimated dividend yield is 3.08%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.25.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 127.6, implying annual growth of 20.5%.
Current consensus DPS estimate is 61.3, implying a prospective dividend yield of 3.0%.
Current consensus EPS estimate suggests the PER is 16.1.

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

DMP    DOMINO'S PIZZA ENTERPRISES LIMITED

Food, Beverages & Tobacco – Overnight Price: $39.65

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

Prior to the February reporting season, Goldman Sachs adjusts earnings forecasts for Australian Consumer/Retail stocks under coverage in the household goods and staples space.

The analysts take into account three main themes: retail sales data suggests strength for household goods; supermarket volumes will likely remain strong; and potential for four turnaround stories.

While Domino's Pizza Enterprises is one of the broker's four turnaround stories, the broker's Sell rating is kept on valuation. The target falls by -6.9% to $37.50.

This report was published on January 25, 2024.

Target price is $37.50 Current Price is $39.65 Difference: minus $2.15 (current price is over target).
If DMP meets the Goldman Sachs target it will return approximately minus 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $56.18, suggesting upside of 41.7%(ex-dividends)

Forecast for FY24:

Current consensus EPS estimate is 143.3, implying annual growth of 210.8%.
Current consensus DPS estimate is 109.0, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 27.7.

Forecast for FY25:

Current consensus EPS estimate is 194.9, implying annual growth of 36.0%.
Current consensus DPS estimate is 144.5, implying a prospective dividend yield of 3.6%.
Current consensus EPS estimate suggests the PER is 20.3.

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

EDV    ENDEAVOUR GROUP LIMITED

Food, Beverages & Tobacco – Overnight Price: $5.62

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

Prior to the February reporting season, Goldman Sachs adjusts earnings forecasts for Australian Consumer/Retail stocks under coverage in the household goods and staples space.

The analysts take into account three main themes: retail sales data suggests strength for household goods; supermarket volumes will likely remain strong; and potential for four turnaround stories.

Of the four turnaround stories, Buy-rated Endeavour Group will be the first to recover following 1H results, in the broker's view.

Sequential improvement is expected for 2Q retail numbers, while stabilising gaming revenues will likely provide downside support for Hotels.The analyst maintains a Buy rating and $6.40 target.

This report was published on January 25, 2024.

Target price is $6.40 Current Price is $5.62 Difference: $0.78
If EDV meets the Goldman Sachs target it will return approximately 14% (excluding dividends, fees and charges).
Current consensus price target is $5.73, suggesting upside of 2.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 23.00 cents and EPS of 29.00 cents.
At the last closing share price the estimated dividend yield is 4.09%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.38.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 28.7, implying annual growth of -2.8%.
Current consensus DPS estimate is 20.6, implying a prospective dividend yield of 3.7%.
Current consensus EPS estimate suggests the PER is 19.6.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 25.00 cents and EPS of 31.00 cents.
At the last closing share price the estimated dividend yield is 4.45%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.13.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 30.4, implying annual growth of 5.9%.
Current consensus DPS estimate is 21.5, implying a prospective dividend yield of 3.8%.
Current consensus EPS estimate suggests the PER is 18.5.

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

FLT    FLIGHT CENTRE TRAVEL GROUP LIMITED

Travel, Leisure & Tourism – Overnight Price: $21.29

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

Prior to the February reporting season, Goldman Sachs adjusts earnings forecasts for Australian Consumer/Retail stocks under coverage in the household goods and staples space.

The analysts take into account three main themes: retail sales data suggests strength for household goods; supermarket volumes will likely remain strong; and potential for four turnaround stories.

The target for Flight Centre Travel rises by 3.5% to 20.70. Neutral.

This report was published on January 25, 2024.

Target price is $20.70 Current Price is $21.29 Difference: minus $0.59 (current price is over target).
If FLT meets the Goldman Sachs target it will return approximately minus 3% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $24.38, suggesting upside of 14.5%(ex-dividends)

Forecast for FY24:

Current consensus EPS estimate is 97.0, implying annual growth of 319.4%.
Current consensus DPS estimate is 33.2, implying a prospective dividend yield of 1.6%.
Current consensus EPS estimate suggests the PER is 21.9.

Forecast for FY25:

Current consensus EPS estimate is 138.6, implying annual growth of 42.9%.
Current consensus DPS estimate is 58.3, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 15.4.

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

GMD    GENESIS MINERALS LIMITED

Gold & Silver – Overnight Price: $1.62

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

Genesis Minerals' quarterly production has triggered a downgrade from Moelis, to Hold from Buy, with a reduced target price of $1.70 (down from $2).

The culprit does not lay with the released production volumes, but is related to higher capital costs. This, the broker explains, has a material impact on prospective financials.

Moelis expects to see a "messy" full year result, to be followed up with an investor day. The broker also notes management explicitly reiterated it has the people and assets in place to deliver on its growth plans.

This report was published on January 25, 2024.

Target price is $1.70 Current Price is $1.62 Difference: $0.075
If GMD meets the Moelis target it will return approximately 5% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 0.00 cents and EPS of 6.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.21.

Forecast for FY25:

Moelis forecasts a full year FY25 dividend of 0.00 cents and EPS of 7.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.21.

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

GOR    GOLD ROAD RESOURCES LIMITED

Gold & Silver – Overnight Price: $1.52

Moelis rates ((GOR)) as Hold (3) –

Gold Road Resources' market update contained two key disappointments for Moelis; costs were materially higher and management's outlook commentary proved rather soft.

Labour issues at Gruyere continue to impact and Moelis has taken the view the issues will linger, and impact, for longer.

In response to the shares receiving a good old shellacking in response, the broker counters the quality of the asset hasn't changed. The counter-offset is that any solving of the problems will require time.

All in all, the analysts report Gold Road Resources remains of significant interest to them because of the scale of the endowment and mine life.

Still, the analysts would need to see a better/lower entry point while the uncertainty around current operational efficiencies remains or develop conviction those issues have been addressed.

Target $1.45 (was $1.90). Hold.

This report was published on January 29, 2024.

Target price is $1.45 Current Price is $1.52 Difference: minus $0.07 (current price is over target).
If GOR meets the Moelis target it will return approximately minus 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $1.86, suggesting upside of 22.5%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 2.20 cents and EPS of 11.10 cents.
At the last closing share price the estimated dividend yield is 1.45%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.69.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 9.9, implying annual growth of 52.5%.
Current consensus DPS estimate is 2.1, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 15.4.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 1.10 cents and EPS of 10.90 cents.
At the last closing share price the estimated dividend yield is 0.72%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.94.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 9.6, implying annual growth of -3.0%.
Current consensus DPS estimate is 2.2, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 15.8.

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

HUB    HUB24 LIMITED

Wealth Management & Investments – Overnight Price: $37.30

Moelis rates ((HUB)) as Hold (3) –

Following recent market updates by all of Hub24, Netwealth Group and Praemium, Moelis has published a general sector overview. Hub214 is rated Hold with a price target of $38.93.

Among the observations made is that all three benefited from positive market movement in the December quarter, but Hub24 achieved the strongest growth in funds under administration (Praemium grew by a rather tepid 9.6% compared with its larger peers).

Hub24 and Netwealth also generated positive netflow for the quarter, with Hub24 experiencing an acceleration in advisor numbers.

This report was published on January 30, 2024.

Target price is $38.93 Current Price is $37.30 Difference: $1.63
If HUB meets the Moelis target it will return approximately 4% (excluding dividends, fees and charges).
Current consensus price target is $38.50, suggesting upside of 3.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 42.60 cents and EPS of 85.20 cents.
At the last closing share price the estimated dividend yield is 1.14%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 43.78.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 80.8, implying annual growth of 69.4%.
Current consensus DPS estimate is 36.3, implying a prospective dividend yield of 1.0%.
Current consensus EPS estimate suggests the PER is 46.2.

Forecast for FY25:

Moelis forecasts a full year FY25 dividend of 55.80 cents and EPS of 111.60 cents.
At the last closing share price the estimated dividend yield is 1.50%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 33.42.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 104.2, implying annual growth of 29.0%.
Current consensus DPS estimate is 47.6, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 35.8.

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

HVN    HARVEY NORMAN HOLDINGS LIMITED

Consumer Electronics – Overnight Price: $4.42

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

Prior to the February reporting season, Goldman Sachs adjusts earnings forecasts for Australian Consumer/Retail stocks under coverage in the household goods and staples space.

The analysts take into account three main themes: retail sales data suggests strength for household goods; supermarket volumes will likely remain strong; and potential for some turnaround stories.

The broker plays the household goods related-theme by upgrading the rating for Wesfarmers to Buy from Neutral, in the expectation a buoyant Australian housing market will support resilient sales and margins for Bunnings.

For another non-apparel domestic discretionary stock, Harvey Norman, Goldman raises its target by 5.3% to $4.00. Neutral.

This report was published on January 25, 2024.

Target price is $4.00 Current Price is $4.42 Difference: minus $0.42 (current price is over target).
If HVN meets the Goldman Sachs target it will return approximately minus 10% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $4.11, suggesting downside of -7.0%(ex-dividends)

Forecast for FY24:

Current consensus EPS estimate is 29.0, implying annual growth of -33.0%.
Current consensus DPS estimate is 21.9, implying a prospective dividend yield of 5.0%.
Current consensus EPS estimate suggests the PER is 15.2.

Forecast for FY25:

Current consensus EPS estimate is 34.5, implying annual growth of 19.0%.
Current consensus DPS estimate is 25.9, implying a prospective dividend yield of 5.9%.
Current consensus EPS estimate suggests the PER is 12.8.

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

JBH    JB HI-FI LIMITED

Consumer Electronics – Overnight Price: $57.19

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

Prior to the February reporting season, Goldman Sachs adjusts earnings forecasts for Australian Consumer/Retail stocks under coverage in the household goods and staples space.

The analysts take into account three main themes: retail sales data suggests strength for household goods; supermarket volumes will likely remain strong; and potential for some turnaround stories.

The broker plays the household goods related-theme by upgrading the rating for Wesfarmers to Buy from Neutral, in the expectation a buoyant Australian housing market will support resilient sales and margins for Bunnings.

For another non-apparel domestic discretionary stock, JB Hi-Fi, the broker raises its target to $54.10 from $44.80 and maintains a Neutral rating.

This report was published on January 25, 2024.

Target price is $54.10 Current Price is $57.19 Difference: minus $3.09 (current price is over target).
If JBH meets the Goldman Sachs target it will return approximately minus 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $46.90, suggesting downside of -18.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 245.00 cents and EPS of 376.00 cents.
At the last closing share price the estimated dividend yield is 4.28%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.21.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 342.9, implying annual growth of -28.6%.
Current consensus DPS estimate is 224.2, implying a prospective dividend yield of 3.9%.
Current consensus EPS estimate suggests the PER is 16.7.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 238.00 cents and EPS of 364.00 cents.
At the last closing share price the estimated dividend yield is 4.16%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.71.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 351.6, implying annual growth of 2.5%.
Current consensus DPS estimate is 228.6, implying a prospective dividend yield of 4.0%.
Current consensus EPS estimate suggests the PER is 16.3.

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

LRK    LARK DISTILLING CO. LIMITED

Food, Beverages & Tobacco – Overnight Price: $1.28

Moelis rates ((LRK)) as Hold (3) –

Lark Distilling Co's Q2 market update failed to meet Moelis's forecasts, with softer indirect export sales to blame, the broker highlights, pointing towards China.

Lower production costs assisted the company with beating Moelis's operating cash flow estimate. The broker lauds management's cost discipline.

Domestic sales continue to grow solidly, but China remains a question mark. On that basis, Moelis sticks with its Hold rating while its target price decreases to $1.42 from $1.69.

This report was published on January 31, 2024.

Target price is $1.42 Current Price is $1.28 Difference: $0.14
If LRK meets the Moelis target it will return approximately 11% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 5.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 23.70.

Forecast for FY25:

Moelis forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 5.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 24.62.

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

M7T    MACH7 TECHNOLOGIES LIMITED

Healthcare services – Overnight Price: $0.70

Wilsons rates ((M7T)) as Overweight (1) –

Wilsons was unsurprised by Mach7 Technologies' full year revenue guidance downgrade, as medical facilities increasingly opt for subscription contracts over capital contracts, removing the company's up front payment.

Impacts of the downgrade were tempered by a 25% sales order guidance increase for the year, with the company now targeting more than $60m, which Wilsons believes this neutralised a market reaction.

The company continues to target becoming cash flow breakeven for the year.

The Overweight rating is retained and the target price decreases to $1.05 from $1.15.

This report was published on January 25, 2024.

Target price is $1.05 Current Price is $0.70 Difference: $0.345
If M7T 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 0.00 cents and EPS of minus 3.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 19.05.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 2.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 30.65.

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

MAD    MADER GROUP LIMITED

Mining Sector Contracting – Overnight Price: $6.49

Moelis rates ((MAD)) as Buy (1) –

Moelis was pleased to observe Mader Group's December-quarter update revealed continued strong growth momentum. The operations in Australia in particular "impressed" the broker yet again.

With management reaffirming FY24 guidance in all its items, and continuing to reduce the company's debt, the Buy rating remains in place. Target price is $7.41 (down from $7.65) on relatively small amendments to forecasts.

As per the broker's assessment, availability of skilled labour remains this company's prime challenge.

This report was published on January 31, 2024.

Target price is $7.41 Current Price is $6.49 Difference: $0.92
If MAD meets the Moelis target it will return approximately 14% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 7.40 cents and EPS of 24.70 cents.
At the last closing share price the estimated dividend yield is 1.14%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.28.

Forecast for FY25:

Moelis forecasts a full year FY25 dividend of 8.90 cents and EPS of 29.80 cents.
At the last closing share price the estimated dividend yield is 1.37%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.78.

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: $3.64

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

Prior to the February reporting season, Goldman Sachs adjusts earnings forecasts for Australian Consumer/Retail stocks under coverage in the household goods and staples space.

The analysts take into account three main themes: retail sales data suggests strength for household goods; supermarket volumes will likely remain strong; and potential for four turnaround stories.

The target for Metcash falls by -2.7% to $3.60. Neutral. Supermarket volumes will remain strong, given reversion to in-home dining, believes the broker.

This report was published on January 25, 2024.

Target price is $3.60 Current Price is $3.64 Difference: minus $0.04 (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 $4.00, suggesting upside of 9.9%(ex-dividends)

Forecast for FY24:

Current consensus EPS estimate is 28.5, implying annual growth of 6.3%.
Current consensus DPS estimate is 20.9, implying a prospective dividend yield of 5.7%.
Current consensus EPS estimate suggests the PER is 12.8.

Forecast for FY25:

Current consensus EPS estimate is 28.3, implying annual growth of -0.7%.
Current consensus DPS estimate is 20.7, implying a prospective dividend yield of 5.7%.
Current consensus EPS estimate suggests the PER is 12.9.

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

NWL    NETWEALTH GROUP LIMITED

Wealth Management & Investments – Overnight Price: $16.85

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

Netwealth Group's quarterly market update revealed key metrics broadly in line with Wilsons' forecasts. The gross inflow proved somewhat weaker but there was equally a meaningful reduction in outflows, the broker highlights.

Wilsons suggests forced migrations by some of the competitors appear to be assisting gross inflows momentum. The coming quarters should continue this trend, suggests the broker.

The CFO stepping down is considered a negative. The company has reiterated a strong outlook statement, Wilsons adds.

Overweight. Target $18.40 (unchanged).

This report was published on January 29, 2024.

Target price is $18.40 Current Price is $16.85 Difference: $1.55
If NWL meets the Wilsons target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $16.23, suggesting downside of -3.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 28.60 cents and EPS of 33.70 cents.
At the last closing share price the estimated dividend yield is 1.70%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 50.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 34.2, implying annual growth of 24.2%.
Current consensus DPS estimate is 28.5, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 49.3.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 38.30 cents and EPS of 45.00 cents.
At the last closing share price the estimated dividend yield is 2.27%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 37.44.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 41.6, implying annual growth of 21.6%.
Current consensus DPS estimate is 34.8, implying a prospective dividend yield of 2.1%.
Current consensus EPS estimate suggests the PER is 40.5.

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

PMV    PREMIER INVESTMENTS LIMITED

Apparel & Footwear – Overnight Price: $28.14

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

Prior to the February reporting season, Goldman Sachs adjusts earnings forecasts for Australian Consumer/Retail stocks under coverage in the household goods and staples space.

The analysts take into account three main themes: retail sales data suggests strength for household goods; supermarket volumes will likely remain strong; and potential for four turnaround stories.

The target for Premier Investments rises by 5.4% to $23.50. Sell. Due to declines in global freight costs, the broker expects the gross profit margin at Premier will likely deliver an upside surprise at its February result.

This report was published on January 25, 2024.

Target price is $23.50 Current Price is $28.14 Difference: minus $4.64 (current price is over target).
If PMV meets the Goldman Sachs target it will return approximately minus 16% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $25.60, suggesting downside of -9.0%(ex-dividends)

Forecast for FY24:

Current consensus EPS estimate is 154.5, implying annual growth of -9.3%.
Current consensus DPS estimate is 111.7, implying a prospective dividend yield of 4.0%.
Current consensus EPS estimate suggests the PER is 18.2.

Forecast for FY25:

Current consensus EPS estimate is 157.8, implying annual growth of 2.1%.
Current consensus DPS estimate is 114.6, implying a prospective dividend yield of 4.1%.
Current consensus EPS estimate suggests the PER is 17.8.

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

PPS    PRAEMIUM LIMITED

Wealth Management & Investments – Overnight Price: $0.38

Moelis rates ((PPS)) as Buy (1) –

Following recent market updates by all of Hub24, Netwealth Group and Praemium, Moelis has published a general sector overview. 

Among the observations made is that all three benefited from positive market movement in the December quarter, but Hub24 achieved the strongest growth in funds under administration (Praemium grew by a rather tepid 9.6% compared with its larger peers).

The broker rates Praemium as Buy with a 64c price target. Netwealth is as yet not formally covered.

This report was published on January 30, 2024.

Target price is $0.64 Current Price is $0.38 Difference: $0.26
If PPS meets the Moelis target it will return approximately 68% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 1.10 cents and EPS of 1.80 cents.
At the last closing share price the estimated dividend yield is 2.89%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.11.

Forecast for FY25:

Moelis forecasts a full year FY25 dividend of 1.40 cents and EPS of 2.30 cents.
At the last closing share price the estimated dividend yield is 3.68%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.52.

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

RMD    RESMED INC

Medical Equipment & Devices – Overnight Price: $29.20

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

A pleased team of Wilsons analysts observes how market attention is shifting towards "solid financial results" for ResMed. It had been a while, a period described as "irrational fear of the improbable".

Wilsons saw a solid quarterly performance, with the international launch of the fresh AS11 model back on the agenda, and key competitor Philips still in disarray.

The broker is a firm believer GLP-1s and CPAP will combine to combat sleep apnoea. Only small adjustments have been made to forecasts.

Wilsons' valuation has increased to US$209; $31.28 in Australia. Overweight.

This report was published on January 25, 2024.

Target price is $31.28 Current Price is $29.20 Difference: $2.08
If RMD meets the Wilsons target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $33.04, suggesting upside of 13.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 29.35 cents and EPS of 111.06 cents.
At the last closing share price the estimated dividend yield is 1.01%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.29.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 116.1, implying annual growth of N/A.
Current consensus DPS estimate is 29.7, implying a prospective dividend yield of 1.0%.
Current consensus EPS estimate suggests the PER is 25.2.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 31.78 cents and EPS of 126.04 cents.
At the last closing share price the estimated dividend yield is 1.09%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.17.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 130.8, implying annual growth of 12.7%.
Current consensus DPS estimate is 32.4, implying a prospective dividend yield of 1.1%.
Current consensus EPS estimate suggests the PER is 22.3.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

STX    STRIKE ENERGY LIMITED

NatGas – Overnight Price: $0.43

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

Strike Energy's Q2 release proved in line with Wilsons forecasts, with Overweight rating and 53c price target unchanged.

Wilsons highlights the structural delineation of the Walyering East prospect which the broker suggests could be one of Strike’s exploration targets for late this year.

Minuscule amendments have been made to forecasts.

This report was published on January 29, 2024.

Target price is $0.53 Current Price is $0.43 Difference: $0.1
If STX meets the Wilsons target it will return approximately 23% (excluding dividends, fees and charges).
Current consensus price target is $0.53, suggesting upside of 22.5%(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 0.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 53.75.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 0.6, 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 71.7.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 0.00 cents and EPS of 1.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.63.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1.7, implying annual growth of 183.3%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 25.3.

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

SUL    SUPER RETAIL GROUP LIMITED

Automobiles & Components – Overnight Price: $15.97

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

Prior to the February reporting season, Goldman Sachs adjusts earnings forecasts for Australian Consumer/Retail stocks under coverage in the household goods and staples space.

The analysts take into account three main themes: retail sales data suggests strength for household goods; supermarket volumes will likely remain strong; and potential for some turnaround stories.

The broker plays the household goods related-theme by upgrading the rating for Wesfarmers to Buy from Neutral, in the expectation a buoyant Australian housing market will support resilient sales and margins for Bunnings.

For another non-apparel domestic discretionary stock, Super Retail, Goldman raises its target by 23.6% to $17.80 following preliminary 1H results. This company is the broker's preferred pick within the Australian discretionary space. Buy.

This report was published on January 25, 2024.

Target price is $17.80 Current Price is $15.97 Difference: $1.83
If SUL meets the Goldman Sachs target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $14.54, suggesting downside of -8.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 67.90 cents and EPS of 104.40 cents.
At the last closing share price the estimated dividend yield is 4.25%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.30.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 105.4, implying annual growth of -9.5%.
Current consensus DPS estimate is 76.0, implying a prospective dividend yield of 4.8%.
Current consensus EPS estimate suggests the PER is 15.2.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 71.80 cents and EPS of 110.50 cents.
At the last closing share price the estimated dividend yield is 4.50%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.45.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 107.3, implying annual growth of 1.8%.
Current consensus DPS estimate is 74.5, implying a prospective dividend yield of 4.7%.
Current consensus EPS estimate suggests the PER is 14.9.

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

TWE    TREASURY WINE ESTATES LIMITED

Food, Beverages & Tobacco – Overnight Price: $10.77

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

Prior to the February reporting season, Goldman Sachs adjusts earnings forecasts for Australian Consumer/Retail stocks under coverage in the household goods and staples space.

The analysts take into account three main themes: retail sales data suggests strength for household goods; supermarket volumes will likely remain strong; and potential for four turnaround stories.

Treasury Wine Estates is one of the four turnaround stories, though the broker expects a recovery may be protracted given ongoing lacklustre Chinese demand. Happily, it's thought bearishness on this topic is already reflected in the valuation.

The Buy rating and $12.40 target are retained.

This report was published on January 25, 2024.

Target price is $12.40 Current Price is $10.77 Difference: $1.63
If TWE meets the Goldman Sachs target it will return approximately 15% (excluding dividends, fees and charges).
Current consensus price target is $13.03, suggesting upside of 20.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 34.00 cents and EPS of 51.00 cents.
At the last closing share price the estimated dividend yield is 3.16%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.12.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 52.2, implying annual growth of 49.6%.
Current consensus DPS estimate is 35.8, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 20.6.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 41.00 cents and EPS of 59.00 cents.
At the last closing share price the estimated dividend yield is 3.81%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.25.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 62.9, implying annual growth of 20.5%.
Current consensus DPS estimate is 43.0, implying a prospective dividend yield of 4.0%.
Current consensus EPS estimate suggests the PER is 17.1.

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

WES    WESFARMERS LIMITED

Consumer Products & Services – Overnight Price: $58.17

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

Prior to the February reporting season, Goldman Sachs adjusts earnings forecasts for Australian Consumer/Retail stocks under coverage in the household goods and staples space.

The analysts take into account three main themes: retail sales data suggests strength for household goods; supermarket volumes will likely remain strong; and potential for some turnaround stories.

The broker plays the household goods related-theme by upgrading the rating for Wesfarmers to Buy from Neutral, in the expectation a buoyant Australian housing market will support resilient sales and margins for Bunnings.

The target rises by 26.3% to $62.90.

This report was published on January 25, 2024.

Target price is $62.90 Current Price is $58.17 Difference: $4.73
If WES meets the Goldman Sachs target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $50.31, suggesting downside of -13.5%(ex-dividends)

Forecast for FY24:

Current consensus EPS estimate is 219.6, implying annual growth of 0.8%.
Current consensus DPS estimate is 187.1, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 26.5.

Forecast for FY25:

Current consensus EPS estimate is 245.7, implying annual growth of 11.9%.
Current consensus DPS estimate is 208.9, implying a prospective dividend yield of 3.6%.
Current consensus EPS estimate suggests the PER is 23.7.

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

WOW    WOOLWORTHS GROUP LIMITED

Food, Beverages & Tobacco – Overnight Price: $36.01

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

Prior to the February reporting season, Goldman Sachs adjusts earnings forecasts for Australian Consumer/Retail stocks under coverage in the household goods and staples space.

The analysts take into account three main themes: retail sales data suggests strength for household goods; supermarket volumes will likely remain strong; and potential for four turnaround stories.

The target for Woolworths Group rises by 2.1% to $43.30. Buy. Supermarket volumes will remain strong, given reversion to in-home dining, believes the broker. It's also felt the company's other ecosystem growth and profit levers are under-appreciated.

This report was published on January 25, 2024.

Target price is $43.30 Current Price is $36.01 Difference: $7.29
If WOW meets the Goldman Sachs target it will return approximately 20% (excluding dividends, fees and charges).
Current consensus price target is $36.74, suggesting upside of 2.0%(ex-dividends)

Forecast for FY24:

Current consensus EPS estimate is 146.5, implying annual growth of 10.0%.
Current consensus DPS estimate is 107.9, implying a prospective dividend yield of 3.0%.
Current consensus EPS estimate suggests the PER is 24.6.

Forecast for FY25:

Current consensus EPS estimate is 156.0, implying annual growth of 6.5%.
Current consensus DPS estimate is 115.0, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 23.1.

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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