Australian Broker Call *Extra* Edition – Feb 07, 2024

This story features ACUSENSUS LIMITED, and other companies. For more info SHARE ANALYSIS: ACE

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)

ACE   ARX   CMM   DDR   HLS   IDX   ING   MAQ   OCL   PER   SHL   SHV   TLS   TPG  

ACE    ACUSENSUS LIMITED

Transportation & Logistics – Overnight Price: $0.88

Wilsons rates ((ACE)) as No Rating (-1) –

Wilsons provides some commentary around Acusensus, without including forecasts, target price or a rating in first-up research.

The company specialises in traffic management and road safety solutions, largely by using technology such as cameras and artificial intelligence. The aim is to detect distracted drivers who are illegally using mobile phones and/or those exceeding the speed limit.

Revenues arise from hardware rental or sale, software licensing and equipment installation, explains the broker. System operation and maintenance, equipment deployment services, as well as image review and verification services are additional sources of revenue.

The NSW Government first utilised the Acusensus technology in late-2019 with fatalities in the first two years of the program declining by -20%.

This report was published on February 1, 2024.

Current Price is $0.88. Target price not assessed.

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

ARX    AROA BIOSURGERY LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $0.56

Jarden rates ((ARX)) as Downgrade to Overweight from Buy (2) –

Jarden was left surprised by downgrades issued by Aroa Biosurgery, with the company lowering its second half revenue guidance by -17% and full year revenue guidance by -8%, despite providing previous guidance just two months ago.

As explained by the broker, the downgrade is due to an overestimation of revenue share from Tela Bio, a delay in new Tela product, and lower sales from Myriad.

On the latter point, while Jarden finds lower than expected growth in Myriad disappointing, it points out progress has been made on accounts and sales productivity and guidance of 70-85% year-on-year growth for the product is still encouraging.

The rating is downgraded to Overweight from Buy and the target price decreases to $1.00 from $1.20.

This report was published on January 31, 2024.

Target price is $1.00 Current Price is $0.56 Difference: $0.435
If ARX meets the Jarden target it will return approximately 77% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 1.39 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 40.71.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 0.00 cents and EPS of 1.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 46.97.

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

CMM    CAPRICORN METALS LIMITED

Gold & Silver – Overnight Price: $4.34

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

With Capricorn Metals demonstrating a slight quarter-on-quarter production improvement, reporting production of 30,400 ounces in the December quarter from 29,700 in the September quarter, Jarden finds full year guidance of 115-125,000 ounces "comfortable".

The broker maintains a forecast at the lower end of range at 117,700 ounces, partly on commentary regarding elevated stripped scheduled for the current half.

The broker also forecasts slightly higher all-in sustaining costs of $1,399 per ounce compared to guidance of $1,270-1,370 per ounce, noting that a 20% sales increase and 3% increase in realised pricing in the December quarter drove only a 9% improvement to operating cashflow.

The Overweight rating is retained and the target price decreases to $4.78 from $4.89.

This report was published on January 30, 2024.

Target price is $4.78 Current Price is $4.34 Difference: $0.44
If CMM meets the Jarden target it will return approximately 10% (excluding dividends, fees and charges).
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 24.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.71.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 0.00 cents and EPS of 24.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.79.

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

DDR    DICKER DATA LIMITED

Hardware & Equipment – Overnight Price: $11.27

Goldman Sachs rates ((DDR)) as Downgrade to Sell from Neutral (5) –

Goldman Sachs downgrades its rating for Dicker Data to Sell from Neutral. Based on feedback from OEM suppliers, it's thought the consensus forecast for a FY24 PC sales recovery is too high.

The analyst also cautions Networking sales may slow considerably as due to slow backlog fulfillment. Gearing levels are also considered high, with potential for a capital raise if management targets organic or inorganic growth initiatives.

Overall, the broker remains cautious on management's forward commentary during upcoming 2H results, given the tailwinds experienced during the supply-constrained post-covid period.

The $10.20 target is unchanged.

This report was published on January 29, 2024.

Target price is $10.20 Current Price is $11.27 Difference: minus $1.07 (current price is over target).
If DDR meets the Goldman Sachs target it will return approximately minus 9% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in December.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 44.30 cents and EPS of 25.50 cents.
At the last closing share price the estimated dividend yield is 3.93%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 44.20.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 49.50 cents and EPS of 50.90 cents.
At the last closing share price the estimated dividend yield is 4.39%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.14.

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

HLS    HEALIUS LIMITED

Healthcare services – Overnight Price: $1.40

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

Jarden upgrades its forecast organic revenue growth rates for Healius by 1.3% to better reflect the company's six-month Medicare growth rates.

Medicare market growth rates continued to be "soggy" in December, notes the broker, with the 2.9% growth rate for pathology benefits only slightly stronger than for November. It's felt the bottleneck remains the referral channel for pathology and diagnostic imaging.

The target rises to $1.60 from $1.52. Underweight.

This report was published on January 26, 2024.

Target price is $1.60 Current Price is $1.40 Difference: $0.2
If HLS meets the Jarden target it will return approximately 14% (excluding dividends, fees and charges).
Current consensus price target is $1.74, suggesting upside of 24.3%(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 3.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 37.84.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 2.6, 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 53.8.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 3.00 cents and EPS of 7.34 cents.
At the last closing share price the estimated dividend yield is 2.14%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.07.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 7.8, implying annual growth of 200.0%.
Current consensus DPS estimate is 3.6, implying a prospective dividend yield of 2.6%.
Current consensus EPS estimate suggests the PER is 17.9.

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

IDX    INTEGRAL DIAGNOSTICS LIMITED

Medical Equipment & Devices – Overnight Price: $1.97

Jarden rates ((IDX)) as Neutral (3) –

Jarden upgrades its forecast organic revenue growth rates for Integral Diagnostics by 1.3% to better reflect the company's six-month Medicare growth rates.

Medicare market growth rates continued to be "soggy" in December, notes the broker, with the 2.9% growth rate for pathology benefits only slightly stronger than for November. It's felt the bottleneck remains the referral channel for pathology and diagnostic imaging.

The target rises to $2.54 from $2.38. Neutral.

This report was published on January 26, 2024.

Target price is $2.54 Current Price is $1.97 Difference: $0.57
If IDX meets the Jarden target it will return approximately 29% (excluding dividends, fees and charges).
Current consensus price target is $2.24, suggesting upside of 13.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 7.00 cents and EPS of 7.30 cents.
At the last closing share price the estimated dividend yield is 3.55%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.99.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 7.6, implying annual growth of -29.4%.
Current consensus DPS estimate is 5.6, implying a prospective dividend yield of 2.8%.
Current consensus EPS estimate suggests the PER is 25.9.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 6.40 cents and EPS of 9.50 cents.
At the last closing share price the estimated dividend yield is 3.25%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.74.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 10.9, implying annual growth of 43.4%.
Current consensus DPS estimate is 7.8, implying a prospective dividend yield of 4.0%.
Current consensus EPS estimate suggests the PER is 18.1.

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

ING    INGHAMS GROUP LIMITED

Food, Beverages & Tobacco – Overnight Price: $4.44

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

Goldman Sachs remains cautious on management's forward commentary during upcoming 1H results for Inghams Group, given the prior tailwinds from the supply-constrained post-covid period.

The broker will be alert to the volume outlook across A&NZ, including post-covid trends across the various channels, along with any potential impact of lower alternative protein prices.

The Sell rating is retained and the target price increases to $3.25 from $3.05.

Results are due on February 16.

This report was published on February 29, 2024.

Target price is $3.25 Current Price is $4.44 Difference: minus $1.19 (current price is over target).
If ING meets the Goldman Sachs target it will return approximately minus 27% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $4.33, suggesting downside of -2.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 20.50 cents and EPS of 32.10 cents.
At the last closing share price the estimated dividend yield is 4.62%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.83.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 32.2, implying annual growth of 98.2%.
Current consensus DPS estimate is 19.8, implying a prospective dividend yield of 4.5%.
Current consensus EPS estimate suggests the PER is 13.8.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 20.00 cents and EPS of 28.90 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 15.36.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 33.6, implying annual growth of 4.3%.
Current consensus DPS estimate is 21.1, implying a prospective dividend yield of 4.8%.
Current consensus EPS estimate suggests the PER is 13.2.

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

MAQ    MACQUARIE TECHNOLOGY GROUP LIMITED

Telecommunication – Overnight Price: $69.40

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

Coming into results season, Goldman Sachs likes companies within its small and mid cap coverage with structural growth tailwinds that can withstand a potentially more challenging macroeconomic backdrop.

Buy-rated names Lifestyle Communities, Macquarie Technology and Life360 fit these requirements, according to the analyst.

The broker will be looking at Macquarie Technology's 1H result for additional detail regarding the IC3W data centre development now that the development application (DA) has been obtained.

Goldman raises its IC3W risk-weighting valuation, following the DA approval, and rolls-forward the company's valuation to FY25. The target increases to $82.20 from $77.70 and the Buy rating is maintained.

This report was published on January 29, 2024.

Target price is $82.20 Current Price is $69.40 Difference: $12.8
If MAQ meets the Goldman Sachs target it will return approximately 18% (excluding dividends, fees and charges).
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 125.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 55.48.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 0.00 cents and EPS of 164.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 42.21.

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

OCL    OBJECTIVE CORPORATION LIMITED

IT & Support – Overnight Price: $12.15

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

Goldman Sachs downgrades its rating for Objective Corp to Neutral from Buy and lowers its target to $13.80 from $14.55.

The broker believes consensus is too early incorporating into forecasts an acceleration in annual recurring revenue (ARR) across FY24-26. Also, growth initiatives, resulting in higher hosting costs and greater R&D/S&M spending, present downside risk for margins.

First half results are due on February 22.

This report was published on January 29, 2024.

Target price is $13.80 Current Price is $12.15 Difference: $1.65
If OCL meets the Goldman Sachs target it will return approximately 14% (excluding dividends, fees and charges).
Current consensus price target is $12.04, suggesting downside of -0.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 13.90 cents and EPS of 33.80 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 35.95.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 32.9, implying annual growth of 48.2%.
Current consensus DPS estimate is 15.3, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 36.9.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 17.00 cents and EPS of 36.40 cents.
At the last closing share price the estimated dividend yield is 1.40%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 33.38.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 35.3, implying annual growth of 7.3%.
Current consensus DPS estimate is 17.1, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 34.4.

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

PER    PERCHERON THERAPEUTICS LIMITED

Overnight Price: $0.07

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

After a few disappointing years for the share price, Wilsons likes the FY24 outlook for Percheron Therapeutics, formerly named Antisense Therapeutics, based on the opportunity for the ATL1102 asset.

The broker highlights 50% of the Duchenne Muscular Dystrophy (DMD) market remains under-addressed by appropriate treatments.

Topline data from the Phase IIb trial is due early in the company’s 4Q. The analysts believe this will present an “incredibly important catalyst for the stock”, which has suffered in the absence of any material new clinical data.

The target falls to 27c from 30c. Overweight.

This report was published on January 31, 2024.

Target price is $0.27 Current Price is $0.07 Difference: $0.203
If PER meets the Wilsons target it will return approximately 303% (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 1.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 4.47.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 7.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 0.94.

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: $31.43

Jarden rates ((SHL)) as Neutral (3) –

Jarden upgrades its forecast organic revenue growth rates for Sonic Healthcare by 1.3% to better reflect the company's six-month Medicare growth rates.

Medicare market growth rates continued to be "soggy" in December, notes the broker, with the 2.9% growth rate for pathology benefits only slightly stronger than for November. It's felt the bottleneck remains the referral channel for pathology and diagnostic imaging.

The target rises to $31.20 from $29.90. Neutral.

This report was published on January 26, 2024.

Target price is $31.20 Current Price is $31.43 Difference: minus $0.23 (current price is over target).
If SHL meets the Jarden target it will return approximately minus 1% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $34.46, suggesting upside of 9.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 103.20 cents and EPS of 135.30 cents.
At the last closing share price the estimated dividend yield is 3.28%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.23.

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 22.8.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 104.70 cents and EPS of 160.00 cents.
At the last closing share price the estimated dividend yield is 3.33%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.64.

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 3.6%.
Current consensus EPS estimate suggests the PER is 20.0.

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

SHV    SELECT HARVESTS LIMITED

Agriculture – Overnight Price: $3.88

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

Following a review of Select Harvests' broadly positive FY24 trading update, Wilsons was encouraged by management's expectation for a normalisation of yield, which would be a significant improvement on the previous corresponding period.

Production costs were in line or below the previous corresponding period, a modest improvement on previous management commentary, observe the analysts.

The Overweight rating is retained. Wilsons' higher assumed risk-free rate (to 4.0% from 3.5%) is more than offset by the benefit of forecast earnings upgrades, and the target rises to $5.53 from $5.20. Overweight. 

This report was published on February 1, 2024.

Target price is $5.53 Current Price is $3.88 Difference: $1.65
If SHV meets the Wilsons target it will return approximately 43% (excluding dividends, fees and charges).
Current consensus price target is $4.66, suggesting upside of 20.2%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of 2.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 194.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 6.2, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 62.6.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 0.00 cents and EPS of 37.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.24.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.9, implying annual growth of 188.7%.
Current consensus DPS estimate is 3.0, implying a prospective dividend yield of 0.8%.
Current consensus EPS estimate suggests the PER is 21.7.

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

TLS    TELSTRA GROUP LIMITED

Telecommunication – Overnight Price: $4.03

Jarden rates ((TLS)) as Buy (1) –

In advance of 1H results from Telstra Group on February 15, Jarden takes the opportunity to adjust forecasts. It's felt consensus may be underestimating underlying business momentum into 2H24 and FY25.

The broker forecasts 1H total income and group earnings (EBITDA) ex-associates will grow by 0.9% and 2.5%, respectively, year-on-year.

The Buy rating is kept and the target raised to $4.40 from $4.30.

This report was published on January 29, 2024.

Target price is $4.40 Current Price is $4.03 Difference: $0.37
If TLS meets the Jarden target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $4.37, suggesting upside of 8.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 17.00 cents and EPS of 17.50 cents.
At the last closing share price the estimated dividend yield is 4.22%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.03.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.1, implying annual growth of 8.4%.
Current consensus DPS estimate is 17.8, implying a prospective dividend yield of 4.4%.
Current consensus EPS estimate suggests the PER is 22.3.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 19.00 cents and EPS of 19.70 cents.
At the last closing share price the estimated dividend yield is 4.71%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.46.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 19.5, implying annual growth of 7.7%.
Current consensus DPS estimate is 18.8, implying a prospective dividend yield of 4.7%.
Current consensus EPS estimate suggests the PER is 20.7.

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

TPG    TPG TELECOM LIMITED

Telecommunication – Overnight Price: $5.35

Jarden rates ((TPG)) as Buy (1) –

In advance of FY23 results for TPG Telecom on February 15, Jarden takes the opportunity to adjust its forecasts. Total income is expected to decline by -4.8% year-on-year at the headline level, due to prior year one-offs.

The broker expects FY24 guidance will be provided, and forecasts reported earnings (EBITDA) of $2,061m, roughly in line with consensus. The analyst's forecast incorporates -$30m in transformation costs.

The target rises to $5.80 from $5.40. Buy.

This report was published on January 29, 2024.

Target price is $5.80 Current Price is $5.35 Difference: $0.45
If TPG meets the Jarden target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $5.63, suggesting upside of 5.2%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 18.00 cents and EPS of 20.50 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 26.10.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 14.7, implying annual growth of -46.8%.
Current consensus DPS estimate is 16.5, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 36.4.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 20.00 cents and EPS of 24.10 cents.
At the last closing share price the estimated dividend yield is 3.74%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.20.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.5, implying annual growth of 25.9%.
Current consensus DPS estimate is 19.6, implying a prospective dividend yield of 3.7%.
Current consensus EPS estimate suggests the PER is 28.9.

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

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