Weekly Reports | Feb 23 2024
This story features CLEANAWAY WASTE MANAGEMENT LIMITED, and other companies. For more info SHARE ANALYSIS: CWY
Broker Rating Changes (Post Thursday Last Week)
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CLEANAWAY WASTE MANAGEMENT LIMITED ((CWY)) Upgrade to Overweight from Neutral by Jarden.B/H/S: 0/0/0
Despite the 1H24 earnings miss by Cleanaway Waste Management, Jarden looks beyond these results with a more optimistic take on improving "momentum" for Solid Waste Services and Liquid Waste and Health Services.
The broker adjusts earnings to the higher end of management's EBIT target for FY24 to $354m, but post an increase in net interest estimates, the EPS forecast is lowered by -2.5% for FY24.
Due to the share price weakness and an increase in the valuation for peers, the rating is upgraded to Overweight from Neutral and the target lifted to $2.85 from $2.60.
JAMES HARDIE INDUSTRIES PLC ((JHX)) Upgrade to Overweight from Neutral by Jarden.B/H/S: 0/0/0
Jarden believes there was short term noise around management retaining 4Q24 guidance, rather than the market focusing on better than forecast 3Q24 results which revealed both US volumes and EBIT ahead of expectations.
The strength in US earnings and leverage is highlighted by the analyst as the US market offers scope to recover.
Jarden raises FY24 EPS forecasts by 6.2% and 11.4% for FY25.
The pullback in the share price was seen as a great opportunity to upgrade to Overweight from Neutral and the target lifted to $57 from $48.
Downgrade
A2 MILK COMPANY LIMITED ((A2M)) Downgrade to Market Weight from Overweight by Wilsons.B/H/S: 0/0/0
Wilsons believes a2 Milk Co's management deserves credit for delivering a robust first half result amid a contracting China infant milk formula market, alongside significant channel mix changes.
First half revenue of $812m represented a 4% year-on-year increase, whlie earnings of $113m represented a 5% year-on-year increase, with the result underpinned by stronger China revenue.
A guidance upgrade has the company expecting low to mid-single digit sales growth over the full year.
The rating is downgraded to Market Weight from Overweight and the target price increases to $5.85 from $5.47.
AFT PHARMACEUTICALS LIMITED ((AFP)) Downgrade to Underweight from Neutral by Jarden.B/H/S: 0/0/0
AFT Pharmaceuticals served up an earnings downgrade according to Jarden, only 3-months after the November 1H24 earnings report.
A combination of product launch delays, a change in strategy and lower A&NZ sales were the only details offered to the market for the -22% downgrade in the FY24 EBIT guidance midpoint to $18m from $22m, notes Jarden.
The broker's EBIT forecasts are lowered by -20% to -27% for FY24 to FY26, respectively.
The rating is downgraded to Underweight from Neutral and the target price drops to NZ$2.80 from NZ$3.55.
ABACUS STORAGE KING ((ASK)) Downgrade to Hold from Buy by Moelis.B/H/S: 0/0/0
ABACUS STORAGE KING's December-half result met Moelis's forecasts and management reaffirmed dividend and payout-ratio guidance (a 5% yield), confirming the resilience of the storage market, says the broker.
While RevPAM posted respectable growth (albeit slower), this was overshadowed by the rolling off of hedges, dampening EPS.
The company invested $77m into acquisitions in the half and the broker observes gearing was comfortable, leaving room for $250m in develpments or acquisitions. Moelis expects the company's development pipeline should propel growth.
While the company is trading at a -19% discount to net tangible assets, the broker also observes it is under-earning given its operating cost base and management fees.
Rating downgraded to Hold from Buy. Target price is $1.34.
CHARTER HALL SOCIAL INFRASTRUCTURE REIT ((CQE)) Underweight by Jarden.B/H/S: 0/0/0
According to Jarden, Charter Hall Social Infrastructure REIT offers exposure to some of the most attractive asset classes such as childcare and healthcare. However, the REIT's balance sheet is holding back structural benefits.
The cost of debt supersedes the upside from asset sales and reducing the payout ratio, highlights the analyst.
With significant underperformance of the REIT relative to the sector, it is becoming more attractive notes Jarden, but the 1H24 results pointed to lower interest rates or inorganic growth needed to improve the outlook.
An Underweight rating and $3.05 target are unchanged.
CHARTER HALL RETAIL REIT ((CQR)) Downgrade to Hold from Buy by Moelis.B/H/S: 0/0/0
Charter Hall Retail REIT reported first half earnings per unit of 13.5 cents and dividends per unit of 12.3 cents, alongside reiterating full tear guidance for earnings per unit of 27.4 cents with a 90-95% payout ratio.
Moelis believes the REIT is continuing to deliver a strong operating performance. While the portfolio continues to benefit from tailwinds driving relatively strong top line growth, but earnings headwinds continue to prevent a positive earnings trajectory.
In the medium-term, the broker expects the earnings line to continue to track sideways.
The rating is downgraded to Hold from Buy and the target price decreases to $3.98 from $4.02.
FLETCHER BUILDING LIMITED ((FBU)) Downgrade to Neutral from Buy by Goldman Sachs.B/H/S: 0/0/0
Goldman Sachs downgrades to Neutral from Buy as the first half EBIT of NZ$264m from Fletcher Building was down -27% and below forecasts. This miss at the EBIT line came despite slightly better-than-expected revenue and amid significant margin contraction.
Guidance for FY24 underlying EBIT of NZ$540-640m is also well below expectations and points to a deeper-than-expected trough, the broker asserts. Target is reduced to $3.70 from $4.65.
HOMECO DAILY NEEDS REIT ((HDN)) Downgrade to Hold from Buy by Moelis.B/H/S: 0/0/0
An in line first half result from HomeCo Daily Needs REIT, according to Moelis, with the company reporting funds from operations per share of 4.3 cents.
The period saw HomeCo Daily Needs REIT divest Midland and Epping for $145m, and contract four more assets at a cost of $157m. The company targets a further $70m in development capital expenditure over the second half, currently retaining its target return on invested capital of 7%.
The rating is downgraded to Hold from Buy and the target price of $1.35 is retained.
| Order | Company | New Rating | Old Rating | Broker | |
|---|---|---|---|---|---|
| Upgrade | |||||
| 1 | CLEANAWAY WASTE MANAGEMENT LIMITED | Buy | Neutral | Jarden | |
| 2 | JAMES HARDIE INDUSTRIES PLC | Buy | Neutral | Jarden | |
| Downgrade | |||||
| 3 | A2 MILK COMPANY LIMITED | Neutral | Buy | Wilsons | |
| 4 | ABACUS STORAGE KING | Neutral | Buy | Moelis | |
| 5 | AFT PHARMACEUTICALS LIMITED | Sell | Neutral | Jarden | |
| 6 | CHARTER HALL RETAIL REIT | Neutral | Buy | Moelis | |
| 7 | CHARTER HALL SOCIAL INFRASTRUCTURE REIT | Sell | Buy | Jarden | |
| 8 | FLETCHER BUILDING LIMITED | Neutral | Buy | Goldman Sachs | |
| 9 | HOMECO DAILY NEEDS REIT | Neutral | Buy | Moelis | |
Price Target Changes (Post Thursday Last Week)
| Company | Last Price | Broker | New Target | Old Target | Change | |
|---|---|---|---|---|---|---|
| A2B | A2B Australia | $1.42 | Petra Capital | 1.45 | 2.10 | -30.95% |
| A2M | a2 Milk Co | $5.90 | Wilsons | 5.85 | 5.47 | 6.95% |
| ARF | Arena REIT | $3.38 | Jarden | 4.10 | 4.35 | -5.75% |
| ASK | ABACUS STORAGE KING | $1.23 | Moelis | 1.34 | 1.35 | -0.74% |
| ASX | ASX | $64.25 | Jarden | 62.00 | 61.05 | 1.56% |
| BLX | Beacon Lighting | $2.83 | Jarden | 2.70 | 2.20 | 22.73% |
| BMT | Beamtree Holdings | $0.22 | Petra Capital | 0.61 | 0.60 | 1.67% |
| BRG | Breville Group | $27.16 | Jarden | 23.60 | 23.80 | -0.84% |
| CBA | CommBank | $114.45 | Goldman Sachs | 81.98 | 82.55 | -0.69% |
| Jarden | 99.00 | 100.00 | -1.00% | |||
| CGF | Challenger | $6.95 | Goldman Sachs | 7.50 | 7.00 | 7.14% |
| Jarden | 7.55 | 7.25 | 4.14% | |||
| COF | Centuria Office REIT | $1.17 | Jarden | 1.30 | 1.40 | -7.14% |
| Moelis | 1.97 | 1.98 | -0.51% | |||
| COH | Cochlear | $340.49 | Wilsons | 365.00 | 318.46 | 14.61% |
| CPU | Computershare | $25.69 | Goldman Sachs | 28.00 | 27.00 | 3.70% |
| CQE | Charter Hall Social Infrastructure REIT | $2.70 | Canaccord Genuity | 2.95 | 3.70 | -20.27% |
| Jarden | 3.05 | 3.15 | -3.17% | |||
| CQR | Charter Hall Retail REIT | $3.66 | Jarden | 4.00 | 4.25 | -5.88% |
| Moelis | 3.98 | 4.02 | -1.00% | |||
| CSL | CSL | $285.02 | Jarden | 296.02 | 316.16 | -6.37% |
| CU6 | Clarity Pharmaceuticals | $2.67 | Wilsons | N/A | 2.78 | -100.00% |
| CWY | Cleanaway Waste Management | $2.68 | Jarden | 2.85 | 2.60 | 9.62% |
| DHG | Domain Holdings Australia | $3.16 | Goldman Sachs | 3.60 | 3.55 | 1.41% |
| Jarden | 3.75 | 3.80 | -1.32% | |||
| DOW | Downer EDI | $5.09 | Goldman Sachs | 4.80 | 4.20 | 14.29% |
| DRR | Deterra Royalties | $4.95 | Goldman Sachs | 5.00 | 4.50 | 11.11% |
| DTL | Data#3 | $7.65 | Goldman Sachs | 8.10 | 8.30 | -2.41% |
| Jarden | 9.15 | 9.02 | 1.44% | |||
| Wilsons | 9.12 | 9.60 | -5.00% | |||
| DXS | Dexus | $7.40 | Jarden | 7.90 | 8.10 | -2.47% |
| EVN | Evolution Mining | $3.02 | Jarden | 3.00 | 3.10 | -3.23% |
| EVT | EVT Ltd | $10.95 | Jarden | 11.31 | 12.46 | -9.23% |
| FBU | Fletcher Building | $3.61 | Goldman Sachs | 3.70 | 4.65 | -20.43% |
| Jarden | N/A | 6.13 | -100.00% | |||
| HAS | Hastings Technology Metals | $0.65 | Canaccord Genuity | 2.50 | 3.25 | -23.08% |
| HDN | HomeCo Daily Needs REIT | $1.24 | Jarden | 1.40 | 1.35 | 3.70% |
| IAG | Insurance Australia Group | $5.89 | Jarden | 6.40 | 6.15 | 4.07% |
| IDX | Integral Diagnostics | $2.18 | Canaccord Genuity | 2.10 | 2.95 | -28.81% |
| IEL | IDP Education | $18.76 | Goldman Sachs | 26.60 | 27.60 | -3.62% |
| Jarden | 29.45 | 27.25 | 8.07% | |||
| IMD | Imdex | $1.91 | Canaccord Genuity | 2.25 | 2.10 | 7.14% |
| ING | Inghams Group | $3.53 | Goldman Sachs | 3.15 | 3.25 | -3.08% |
| Jarden | 3.95 | 3.90 | 1.28% | |||
| JHX | James Hardie Industries | $58.10 | Goldman Sachs | 61.65 | 62.20 | -0.88% |
| Jarden | 57.00 | 48.00 | 18.75% | |||
| MFG | Magellan Financial | $8.64 | Goldman Sachs | 8.75 | 8.55 | 2.34% |
| Jarden | 8.40 | 8.10 | 3.70% | |||
| MGH | Maas Group | $4.22 | Goldman Sachs | 3.10 | 2.90 | 6.90% |
| Moelis | 4.65 | 3.81 | 22.05% | |||
| Wilsons | 4.44 | 4.41 | 0.68% | |||
| MQG | Macquarie Group | $191.86 | Goldman Sachs | 183.82 | 180.80 | 1.67% |
| NWH | NRW Holdings | $2.91 | Jarden | 2.95 | 2.85 | 3.51% |
| OML | oOh!media | $1.80 | Canaccord Genuity | 2.00 | 1.75 | 14.29% |
| ORG | Origin Energy | $9.12 | Jarden | 9.20 | 6.00 | 53.33% |
| PME | Pro Medicus | $94.53 | Moelis | 99.57 | 79.06 | 25.94% |
| Wilsons | 93.00 | 81.20 | 14.53% | |||
| QBE | QBE Insurance | $16.71 | Jarden | 19.10 | 20.90 | -8.61% |
| QIP | Qantm Intellectual Property | $1.25 | Petra Capital | 1.76 | 1.57 | 12.10% |
| RFG | Retail Food | $0.08 | Petra Capital | 0.11 | 0.10 | 15.79% |
| RHC | Ramsay Health Care | $50.78 | Jarden | 61.26 | 58.98 | 3.87% |
| RUL | RPMGlobal | $1.97 | Moelis | 2.15 | 2.04 | 5.39% |
| SEK | Seek | $25.61 | Goldman Sachs | 23.50 | 24.90 | -5.62% |
| SPZ | Smart Parking | $0.42 | Canaccord Genuity | 0.50 | 0.45 | 11.11% |
| SVW | Seven Group | $38.58 | Goldman Sachs | 42.10 | 32.50 | 29.54% |
| SWM | Seven West Media | $0.23 | Goldman Sachs | 0.24 | 0.27 | -11.11% |
| SYA | Sayona Mining | $0.05 | Petra Capital | 0.14 | 0.15 | -6.67% |
| TLS | Telstra Group | $3.88 | Goldman Sachs | 4.55 | 4.65 | -2.15% |
| TPW | Temple & Webster | $11.91 | Jarden | 12.67 | 8.56 | 48.01% |
| TWE | Treasury Wine Estates | $12.15 | Goldman Sachs | 12.60 | 12.40 | 1.61% |
| Jarden | 12.90 | 12.30 | 4.88% | |||
| VCX | Vicinity Centres | $2.00 | Jarden | 2.40 | 2.25 | 6.67% |
| VVA | Viva Leisure | $1.51 | Petra Capital | 2.52 | 2.44 | 3.28% |
| WES | Wesfarmers | $63.65 | Goldman Sachs | 66.00 | 62.90 | 4.93% |
| Jarden | 58.60 | 48.60 | 20.58% | |||
| WOR | Worley | $16.00 | Goldman Sachs | 17.60 | 17.70 | -0.56% |
| XRF | XRF Scientific | $1.10 | Canaccord Genuity | 1.30 | 1.16 | 12.07% |
| Company | Last Price | Broker | New Target | Old Target | Change | |
More Highlights
BMT BEAMTREE HOLDINGS LIMITED
Healthcare services – Overnight Price: $0.22
Petra Capital rates ((BMT)) as Buy (1) –
Hospital coding audits in international waters drove 23% year-on-year revenue growth for Beamtree Holdings in its first half, an in-line result according to Petra Capital. The company reitereated its committment to a positive operating profit result over the fulll year.
Beamtree Holdings targets annual recurring revenue of $60m by 2026, and Petra Capital believes conversion of hospital coding audits to subscription licenses and execution of RippleDown sales is key to achieving this, with the RippleDown pipeline the strongest it's ever been.
The Buy rating is retained and the target price increases to 61 cents from 60 cents.
This report was published on February 16, 2024.
Target price is $0.61 Current Price is $0.22 Difference: $0.39
If BMT meets the Petra Capital target it will return approximately 177% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY24:
Petra Capital forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 1.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 15.71.
Forecast for FY25:
Petra Capital forecasts a full year FY25 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 73.33.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
DTL DATA#3 LIMITED.
IT & Support – Overnight Price: $7.65
Jarden rates ((DTL)) as Buy (1) –
Data#3 delivered a lower quality result for 1H24 says Jarden.
However, the broker remains upbeat about the prospects for the company acknowledging that the maturation of the time managed services contract is taking longer than forecast.
The broker notes the results were pre announced but higher interest boosted the after tax profit to 25% on a year earlier with EBIT up only 5% over the same period.
Jarden adjusts forecasts by -6% and -9% for FY24 and FY25, respectively and is expecting a stronger 2H24 result.
A Buy rating is retained and the target price is lifted to $9.15 from $9.02.
This report was published on February 19, 2024.
Target price is $9.15 Current Price is $7.65 Difference: $1.5
If DTL meets the Jarden target it will return approximately 20% (excluding dividends, fees and charges).
Current consensus price target is $8.03, suggesting upside of 5.0%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Jarden forecasts a full year FY24 dividend of 26.50 cents and EPS of 27.90 cents.
At the last closing share price the estimated dividend yield is 3.46%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.42.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 28.0, implying annual growth of 16.9%.
Current consensus DPS estimate is 24.6, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 27.3.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 28.70 cents and EPS of 30.20 cents.
At the last closing share price the estimated dividend yield is 3.75%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.33.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 31.3, implying annual growth of 11.8%.
Current consensus DPS estimate is 27.1, implying a prospective dividend yield of 3.5%.
Current consensus EPS estimate suggests the PER is 24.4.
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
HDN HOMECO DAILY NEEDS REIT
REITs – Overnight Price: $1.24
Jarden rates ((HDN)) as Overweight (2) –
Jarden continues to like HomeCo Daily Needs REIT post the 1H24 results, and is looking for a compound average EBIT growth of 5.8% for FY24 through to FY27.
The analyst assesses the forecasts could be too conservative if management can manage further asset recycling.
Some minor adjustments to FFO forecasts are made, by 0.1% for FY24, and 0.8% for FY25, and the analyst highlights the solid balance sheet in light of higher interest costs.
An Overweight rating is retained, and the target lifted to $1.40 from $1.35.
This report was published on February 19, 2024.
Target price is $1.40 Current Price is $1.24 Difference: $0.16
If HDN meets the Jarden target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $1.31, suggesting upside of 5.6%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Jarden forecasts a full year FY24 dividend of 8.30 cents and EPS of 8.60 cents.
At the last closing share price the estimated dividend yield is 6.69%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.42.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 8.7, implying annual growth of 76.1%.
Current consensus DPS estimate is 8.2, implying a prospective dividend yield of 6.6%.
Current consensus EPS estimate suggests the PER is 14.3.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 8.70 cents and EPS of 9.10 cents.
At the last closing share price the estimated dividend yield is 7.02%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.63.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 8.9, implying annual growth of 2.3%.
Current consensus DPS estimate is 8.7, implying a prospective dividend yield of 7.0%.
Current consensus EPS estimate suggests the PER is 13.9.
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
IMD IMDEX LIMITED
Mining Sector Contracting – Overnight Price: $1.97
Canaccord Genuity rates ((IMD)) as Buy (1) –
Canaccord Genuity has described first half results from Imdex as 'impressive'. The company reported earnings of $71.0m, up 14% year-on-year. The recent Devico acquisition supported metrics from the Americas, delivering 18% year-on-year revenue growth.
Given company commentary for steady activity over the second half and average revenue per unit gains, the broker anticipates second half revenue growth. Canaccord Genuity anticipates the heightened gross margins that appeared towards the end of the first half will carry into the new period.
The Buy rating is retained and the target price increases to $2.25 from $2.10.
This report was published on February 20, 2024.
Target price is $2.25 Current Price is $1.97 Difference: $0.285
If IMD meets the Canaccord Genuity target it will return approximately 15% (excluding dividends, fees and charges).
Current consensus price target is $2.18, suggesting upside of 10.7%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Canaccord Genuity forecasts a full year FY24 dividend of 3.60 cents and EPS of 11.10 cents.
At the last closing share price the estimated dividend yield is 1.83%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.70.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 11.2, implying annual growth of 40.9%.
Current consensus DPS estimate is 3.3, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 17.5.
Forecast for FY25:
Canaccord Genuity forecasts a full year FY25 dividend of 4.40 cents and EPS of 12.80 cents.
At the last closing share price the estimated dividend yield is 2.24%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.35.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 12.7, implying annual growth of 13.4%.
Current consensus DPS estimate is 3.9, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 15.5.
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
MAH MACMAHON HOLDINGS LIMITED
Mining Sector Contracting – Overnight Price: $0.20
Petra Capital rates ((MAH)) as Buy (1) –
Macmahon's December-half result appears to have broadly met Petra Capital's forecasts, a 10% rise in the gross profit margin offsetting lower sales and higher operating expenditure.
Management upgraded FY24 guidance for earnings (EBITA), free cash flow and return on average capital employed (the latter rose to 15.5% in the first half, exceeding the company's 15.0% target). The new ROACE target is 20%.
The broker says management cited a larger order book and observes like-for-like revenue rose 15% after extracting cost recovery revenues.
The company registered a free cash outflow of -$5m, compared with -$20m in the previous corresponding period.
EPS forecasts fall -2% across FY24 to FY26. DPS estimates fall -50%, Petra Capital advising management will use its surplus to pay down debt.
Buy rating reiterated. Target price eases to 30c from 31c.
This report was published on February 21, 2024.
Target price is $0.30 Current Price is $0.20 Difference: $0.105
If MAH meets the Petra Capital target it will return approximately 54% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY24:
Petra Capital forecasts a full year FY24 dividend of 1.00 cents and EPS of 3.80 cents.
At the last closing share price the estimated dividend yield is 5.13%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.13.
Forecast for FY25:
Petra Capital forecasts a full year FY25 dividend of 1.50 cents and EPS of 4.70 cents.
At the last closing share price the estimated dividend yield is 7.69%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.15.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
RFG RETAIL FOOD GROUP LIMITED
Food, Beverages & Tobacco – Overnight Price: $0.07
Petra Capital rates ((RFG)) as Buy (1) –
Petra Capital sees momentum building in Retail Food, with outlet growth accelerating towards the end of the first half, increasing by 44 outlets to a total 743 during the half, and with the company continuing to guide to 11-26% underlying earnings growth over the full year.
The broker sees Retail Food's earnings profile as becoming more predictable. First half growth included the acquisition of nine Beefy's Pies stores, and Petra Capital expects the second half, and FY25, will benefit from full contributions from this acquisiiton and newly opened outlets.
The Buy rating is retained and the target price increases to 11 cents from 9.5 cents.
This report was published on February 21, 2024.
Target price is $0.11 Current Price is $0.07 Difference: $0.035
If RFG meets the Petra Capital target it will return approximately 47% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY24:
Petra Capital forecasts a full year FY24 dividend of 0.00 cents and EPS of 0.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.50.
Forecast for FY25:
Petra Capital forecasts a full year FY25 dividend of 0.30 cents and EPS of 0.70 cents.
At the last closing share price the estimated dividend yield is 4.00%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.71.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
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CHARTS
For more info SHARE ANALYSIS: A2M - A2 MILK COMPANY LIMITED
For more info SHARE ANALYSIS: AFP - AFT PHARMACEUTICALS LIMITED
For more info SHARE ANALYSIS: ASK - ABACUS STORAGE KING
For more info SHARE ANALYSIS: CQE - CHARTER HALL SOCIAL INFRASTRUCTURE REIT
For more info SHARE ANALYSIS: CQR - CHARTER HALL RETAIL REIT
For more info SHARE ANALYSIS: CWY - CLEANAWAY WASTE MANAGEMENT LIMITED
For more info SHARE ANALYSIS: FBU - FLETCHER BUILDING LIMITED
For more info SHARE ANALYSIS: HDN - HOMECO DAILY NEEDS REIT
For more info SHARE ANALYSIS: JHX - JAMES HARDIE INDUSTRIES PLC