Australian Broker Call *Extra* Edition – Apr 12, 2022

This story features AUSSIE BROADBAND LIMITED, and other companies. For more info SHARE ANALYSIS: ABB

An additional news report on the recommendation, valuation, forecast and opinion changes 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)

ABB   AGY   AHX   BHP   BSL   CAJ   CXO   FFX   GLN   GNC (2)   GOR   GUD   HLA   MGV   MIN   MVF   PTM   QHL   SYA   TUL   WBC  

ABB    AUSSIE BROADBAND LIMITED

Telecommunication – Overnight Price: $5.43

JP Morgan rates ((ABB)) as Overweight (1) –

JP Morgan expects subscriber growth guidance to be upgraded at Aussie Broadband, partly because of white-label customer Origin Energy ((ORG)), which indicated broadband customers had grown above 50,000 in March.

Aussie Broadband has already recorded record subscriber growth in early 2022, and also 23,000 white label subscribers are due to be
migrated in the March quarter.

The analyst now forecasts white label subscribers to reach 300,000 in FY26, which suggests a market share of 12% in FY27 (only half of Origin Energy's target). The target price rises to $7.00 from $5.85. Overweight.

This report was published on April 8, 2022.

Target price is $7.00 Current Price is $5.43 Difference: $1.57
If ABB meets the JP Morgan target it will return approximately 29% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

JP Morgan forecasts a full year FY22 dividend of 0.00 cents and EPS of 6.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 90.50.

Forecast for FY23:

JP Morgan forecasts a full year FY23 dividend of 0.00 cents and EPS of 22.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.68.

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

AGY    ARGOSY MINERALS LIMITED

New Battery Elements – Overnight Price: $0.48

Petra Capital rates ((AGY)) as Buy (1) –

Petra Capital compares the ASX's top-10 emerging developers given the market has shifted focus to new supply as lithium prices skyrocket. 

Of the three forms of Enterprise Valuation (EV) of Resources and Reserves, the broker has opted for Lithium Carbonate Equivalent to allow comparisons across all deposit types.

Of the 10, only seven companies have published reserves. Petra notes that declaring Reserves is a much higher benchmark and the peer multiple reflects a median of $1,268/t for LCE – almost twice the EV Resource median.

Brine developers have higher capital intensities than rock developers ($21,000/t to $50,000/t compared with $3,000/t to $7,000/t) but much longer life. 

Petra Capital notes Argosy Minerals is very close to first production (mid 2022) at 2ktpa, and expects this to expand first to 12ktpa and finally to $20ktpa. But it has yet to declare Reserves.

The broker notes the company is expensive based on current Resources comparison but has produced LCE and completed customer qualification. Petra also expects the company to more than double Resources in the June half. 

Buy rating. Target price is 53c.

This report was published on April 7, 2022.

Target price is $0.53 Current Price is $0.48 Difference: $0.05
If AGY meets the Petra Capital target it will return approximately 10% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY22:

Petra Capital forecasts a full year FY22 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 80.00.

Forecast for FY23:

Petra Capital forecasts a full year FY23 dividend of 0.00 cents and EPS of 0.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 120.00.

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

AHX    APIAM ANIMAL HEALTH LIMITED

Healthcare services – Overnight Price: $0.80

Shaw and Partners rates ((AHX)) as Buy (1) –

Shaw and Partners conducts a healthcare sector overview and expects the sector will materially outperform over the medium term.

The broker points to a 50m backlog in doctor visits and expects increased spending post covid will drive an imminent margin expansion of roughly 200 basis points. 

Shaw and Partners expects GP visits will recover to pre-covid levels by May/June 2022 and expects the backlog will take two years to clear. 

Add to that the fact that Australia's population is both growing and ageing, the broker predicts both State and Federal governments will need to increase medical spending (the Victorian government has already announced $1.5bn to ease the elective surgery backlog and the Feds have allocated an extra $220m over four years to the MBS).

The broker expects the companion-animal health industry will enjoy a similar covid recovery and notes Apiam Animal Health delivers exposure to both companion-animal and wholesale animal markets. Agricultural tailwinds are also starting to emerge as Australia exits drought, lifting water entitlements and herds, and increasing grain and cattle volumes.

Shaw says Apiam has accelerated its organic and inorganic growth target and plans to double them by FY24, noting this provides the longest term guidance and ambitions ever provided in the company history.

Buy rating. Target price rises to $1.26 from $1.23.

This report was published on April 11, 2022.

Target price is $1.26 Current Price is $0.80 Difference: $0.46
If AHX meets the Shaw and Partners target it will return approximately 57% (excluding dividends, fees and charges).

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

BHP    BHP GROUP LIMITED

Bulks – Overnight Price: $51.68

Shaw and Partners rates ((BHP)) as Buy (1) –

Shaw and Partners reports that BHP Group has confirmed details of a windfall dividend from the sale of its petroleum assets to Woodside Petroleum ((WPL)).

The broker notes BHP will own 48% of the expanded Woodside – almost 80% more than when BHP originally announced the divestment in August. Woodside will deliver its $30bn consideration through Woodside shares and the Australian Tax Office says BHP can pass this on to shareholders as a fully franked dividend (in the form of shares) at $6.

Now everything is sorted, the broker expects BHP will continue to benefit from strong commodity price tailwinds in metallurgical coal, copper and iron ore out to the September quarter.

Buy rating. Target price rises to $51.00 a share from $50.

This report was published on April 11, 2022.

Target price is $51.00 Current Price is $51.68 Difference: minus $0.68 (current price is over target).
If BHP meets the Shaw and Partners target it will return approximately minus 1% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $49.56, suggesting downside of -4.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 1443.59 cents and EPS of 579.82 cents.
At the last closing share price the estimated dividend yield is 27.93%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.91.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 581.0, implying annual growth of N/A.
Current consensus DPS estimate is 441.5, implying a prospective dividend yield of 8.5%.
Current consensus EPS estimate suggests the PER is 8.9.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 390.83 cents and EPS of 388.39 cents.
At the last closing share price the estimated dividend yield is 7.56%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.31.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 493.4, implying annual growth of -15.1%.
Current consensus DPS estimate is 347.4, implying a prospective dividend yield of 6.7%.
Current consensus EPS estimate suggests the PER is 10.5.

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

BSL    BLUESCOPE STEEL LIMITED

Steel & Scrap – Overnight Price: $20.74

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

BlueScope Steel is set to acquire Cornerstone Building Brands' coil coatings business for US$500m. With capacity for 900,000 tonnes per annum across seven facilities, Goldman Sachs notes the business is the second largest metal painter in the US. 

The company highlighted the purchase triples its US capacity to more than 1.3m tonnes per annum. Goldman Sachs expects BlueScope Steel will look to introduce more higher-margin colourbond type products into the business. 

Completion of the deal, which BlueScope Steel expects will be immediately earnings per share accretive, is targeted for the second half.

The Neutral rating and target price of $21.40 are retained.

This report was published on April 12, 2022.

Target price is $21.40 Current Price is $20.74 Difference: $0.66
If BSL meets the Goldman Sachs target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $26.05, suggesting upside of 25.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 65.00 cents and EPS of 526.00 cents.
At the last closing share price the estimated dividend yield is 3.13%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 3.94.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 514.5, implying annual growth of 117.1%.
Current consensus DPS estimate is 50.0, implying a prospective dividend yield of 2.4%.
Current consensus EPS estimate suggests the PER is 4.0.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 65.00 cents and EPS of 203.00 cents.
At the last closing share price the estimated dividend yield is 3.13%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.22.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 307.8, implying annual growth of -40.2%.
Current consensus DPS estimate is 50.0, implying a prospective dividend yield of 2.4%.
Current consensus EPS estimate suggests the PER is 6.7.

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

CAJ    CAPITOL HEALTH LIMITED

Healthcare services – Overnight Price: $0.35

Shaw and Partners rates ((CAJ)) as Buy (1) –

Shaw and Partners conducts a healthcare sector overview and expects the sector will materially outperform over the medium term.

The broker points to a 50m backlog in doctor visits and expects increased spending post covid will drive an imminent margin expansion of roughly 200 basis points. 

Shaw and Partners expects GP visits will recover to pre-covid levels by May/June 2022 and expects the backlog will take two years to clear. 

Add to that the fact that Australia's population is both growing and ageing, the broker expects both State and Federal governments will need to increase medical spending (the Victorian government has already announced $1.5bn to ease the elective surgery backlog and the Feds have allocated an extra $220m over four years to the MBS).

Shaw and Partners says diagnostic imaging company Capitol Health is delivering a turnaround with margin and market share growth accelerating for the first time in its history.

The broker says the company delivered well through covid and should benefit further from the post-covid industry recovery and government spending.

Target price edges up to 47c from 45c. Buy rating.

This report was published on April 11, 2022.

Target price is $0.49 Current Price is $0.35 Difference: $0.14
If CAJ meets the Shaw and Partners target it will return approximately 40% (excluding dividends, fees and charges).

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

CXO    CORE LITHIUM LIMITED

New Battery Elements – Overnight Price: $1.29

Petra Capital rates ((CXO)) as Hold (3) –

Petra Capital compares the ASX's top-10 emerging developers given the market has shifted focus to new supply as lithium prices skyrocket.

Of the three forms of Enterprise Valuation (EV) of Resources and Reserves, the broker has opted for Lithium Carbonate Equivalent to allow comparisons across all deposit types. Of the 10, only seven companies have published reserves.

Petra notes that declaring Reserves is a much higher benchmark and the peer multiple reflects a median of $1,268/t for LCE – almost twice the EV Resource median.

Brine developers have higher capital intensities than rock developers ($21,000/t to $50,000/t compared with $3,000/t to $7,000/t) but much longer life. Core Lithium enjoys very low capital intensity and first production is expected in late 2022 at the company's Finniss project in the Northern Territory.

The broker reports the company is target 183ktpa of spodumene concentrate and appreciates its profile as a domestic-funded, near-term lithium producer.

Hold rating, the company trading at a premium to peers. Target price is 82c.

This report was published on April 7, 2022.

Target price is $0.82 Current Price is $1.29 Difference: minus $0.47 (current price is over target).
If CXO meets the Petra Capital target it will return approximately minus 36% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY22:

Petra Capital forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 2.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 64.50.

Forecast for FY23:

Petra Capital forecasts a full year FY23 dividend of 0.00 cents and EPS of 13.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.92.

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

FFX    FIREFINCH LIMITED

Gold & Silver – Overnight Price: $1.07

Petra Capital rates ((FFX)) as Buy (1) –

Petra Capital compares the ASX's top-10 emerging developers given the market has shifted focus to new supply as lithium prices skyrocket.

Of the three forms of Enterprise Valuation (EV) of Resources and Reserves, the broker has opted for Lithium Carbonate Equivalent to allow comparisons across all deposit types.

Of the 10, only seven companies have published reserves. Petra notes that declaring Reserves is a much higher benchmark and the peer multiple reflects that at a median of $1,268/t for LCE – almost twice the EV Resource median.

Brine developers have higher capital intensities than rock developers ($21,000/t to $50,000/t compared with $3,000/t to $7,000/t) but much longer life. Firefinch enjoys very low capital intensity and first production is expected in early 2024.

The broker expects Firefinch's interest in the Goulamina Lithium Project in Mali will be spun out as Leo Lithium (LLL) on the ASX.

Petra Capital notes the company is trading below the media Enterprise Value/Reserve of $997/t for LCE which appears to reflect sovereign risk penalty associated with its Africa reserves..

Petra Capital's Firefinch valuation does not include the $420m valuation of the Morila gold mine.

Buy rating retained. Target price is $1.85.

This report was published on April 7, 2022.

Target price is $1.85 Current Price is $1.07 Difference: $0.78
If FFX meets the Petra Capital target it will return approximately 73% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY22:

Petra Capital forecasts a full year FY22 dividend of 0.00 cents and EPS of 0.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 118.89.

Forecast for FY23:

Petra Capital forecasts a full year FY23 dividend of 0.00 cents and EPS of 700.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 0.15.

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

GLN    GALAN LITHIUM LIMITED

New Battery Elements – Overnight Price: $2.02

Petra Capital rates ((GLN)) as Buy rating (1) –

Petra Capital compares the ASX's top-10 emerging developers given the market has shifted focus to new supply as lithium prices skyrocket.

Of the three forms of Enterprise Valuation (EV) of Resources and Reserves, the broker has opted for Lithium Carbonate Equivalent to allow comparisons across all deposit types.

Of the 10, only seven companies have published reserves. Petra notes that declaring Reserves is a much higher benchmark and the peer multiple reflects a median of $1,268/t for LCE – almost twice the EV Resource median.

Brine developers have higher capital intensities than rock developers ($21,000/t to $50,000/t compared with $3,000/t to $7,000/t) but much longer life. 

Petra Capital notes Galan Lithium is trading well below the median LCE price and is the cheapest among peers at $204/t. The company is developing its Hombre Muerto West project next to the Livent project in Argentina.

The broker estimates an EV/Resource for Galan of $4.90 a share compared to its current price of $2.14 a share, and the Candelas project is expected to increase Net Present Value. First production is expected in early 2025.

Buy rating. Target price is $2.43.

This report was published on April 7, 2022.

Target price is $2.43 Current Price is $2.02 Difference: $0.41
If GLN meets the Petra Capital target it will return approximately 20% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Petra Capital forecasts a full year FY22 dividend of 0.00 cents and EPS of 10.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.42.

Forecast for FY23:

Petra Capital forecasts a full year FY23 dividend of 0.00 cents and EPS of 24.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.11.

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

GNC    GRAINCORP LIMITED

Agriculture – Overnight Price: $9.81

Bell Potter rates ((GNC)) as Upgrade to Hold from Sell (3) –

GrainCorp has upgraded FY22 guidance for the second time in two months as the Ukraine War, combined with a bumper crop (thanks to strong rainfall) conspire to deliver massive margins.

Management has pointed to excellent planting conditions for planting the 2022 winter crop. Bell Potter notes the US has reported its worst opening crop in roughly 12 years due to dry weather – although good crop forecasts for Canada mitigate the North American outlook slightly. Mediterranean conditions have also been dry.

Meanwhile, the broker notes strong domestic oilseed prices and a rising AUD to the USD has affected oil seed crush margins – the year to date average sitting at $139/t compared with the FY21 average of $97/t.

The broker upgrades to Hold from Sell. Target price rises to $8.65 from $6.70.

This report was published on April 8, 2022.

Target price is $8.65 Current Price is $9.81 Difference: minus $1.16 (current price is over target).
If GNC meets the Bell Potter target it will return approximately minus 12% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $9.36, suggesting downside of -4.6%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 55.00 cents and EPS of 162.10 cents.
At the last closing share price the estimated dividend yield is 5.61%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.05.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 156.4, implying annual growth of 156.6%.
Current consensus DPS estimate is 54.6, implying a prospective dividend yield of 5.6%.
Current consensus EPS estimate suggests the PER is 6.3.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 30.00 cents and EPS of 92.70 cents.
At the last closing share price the estimated dividend yield is 3.06%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.58.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 84.4, implying annual growth of -46.0%.
Current consensus DPS estimate is 39.7, implying a prospective dividend yield of 4.0%.
Current consensus EPS estimate suggests the PER is 11.6.

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

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

Higher agribusiness margins, a reflection of strong global demand for Australian grain, have driven a guidance upgrade from GrainCorp. Wilsons notes the company now guides to earnings of $590-670m and net profit of $310-370m, despite exports guidance being retained.

The broker highlights the outlook for global demand of Australian grain looks favourable and expects elevated price spreads to linger in the near-term, but FY23 earnings will depend on winter crop sizes and the ability of exporters to secure supply chain access. 

The Market Weight rating is retained and the target price increases to $7.80 from $7.57.

This report was published on April 11, 2022.

Target price is $7.80 Current Price is $9.81 Difference: minus $2.01 (current price is over target).
If GNC meets the Wilsons target it will return approximately minus 20% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $9.36, suggesting downside of -4.6%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 62.00 cents and EPS of 152.40 cents.
At the last closing share price the estimated dividend yield is 6.32%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.44.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 156.4, implying annual growth of 156.6%.
Current consensus DPS estimate is 54.6, implying a prospective dividend yield of 5.6%.
Current consensus EPS estimate suggests the PER is 6.3.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 36.00 cents and EPS of 61.90 cents.
At the last closing share price the estimated dividend yield is 3.67%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.85.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 84.4, implying annual growth of -46.0%.
Current consensus DPS estimate is 39.7, implying a prospective dividend yield of 4.0%.
Current consensus EPS estimate suggests the PER is 11.6.

Market Sentiment: 0.4
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: $1.59

Bell Potter rates ((GOR)) as Upgrade to Buy from Hold (1) –

Gold Road Resources' has announced a conditional recommended scrip takeover offer for DGO Gold ((DGO)).

Bell Potter notes it is the company's third attempt to buy an Australia gold miner/mine in the past year. The target's main asset is a 14.4% stake in De Grey Mining ((DEG)).

Under the terms of the offer, DGO shareholders would own 17.5% of the combined group. The broker says this represents $3.55 a share, and compares with DGO Gold's valuation of $4.37 a share, and represents a 5% premium to the company's portfolio of ASX-listed investments (excluding other exploration assets, net cash and corporate costs. 

The broker upgrades the rating to Buy from Hold to reflect new gold price forecasts and March-quarter production data, as well as the recent retreat in the share price. Target price is steady at $1.70.

This report was published on April 8, 2022.

Target price is $1.70 Current Price is $1.59 Difference: $0.11
If GOR meets the Bell Potter target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $1.80, suggesting upside of 13.2%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 2.10 cents and EPS of 9.20 cents.
At the last closing share price the estimated dividend yield is 1.32%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.28.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 10.8, implying annual growth of 158.4%.
Current consensus DPS estimate is 1.1, implying a prospective dividend yield of 0.7%.
Current consensus EPS estimate suggests the PER is 14.7.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 2.70 cents and EPS of 16.50 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 9.64.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 12.7, implying annual growth of 17.6%.
Current consensus DPS estimate is 1.0, implying a prospective dividend yield of 0.6%.
Current consensus EPS estimate suggests the PER is 12.5.

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

GUD    G.U.D. HOLDINGS LIMITED

Automobiles & Components – Overnight Price: $11.76

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

G.U.D. Holdings recent investor day highlighted the importance of the Vision X acquisition to company strategy. Wilsons notes the purchase will assist in both growing a global leadership position in automotive lighting and drive international expansion of power management.

The broker also has renewed confidence in G.U.D. Holdings' earnings outlook given ongoing demand for 4x4s and SUVs and further growth opportunities in functional accessories.

The Overweight rating with a target price of $14.90. 

This report was published on April 11, 2022.

Target price is $14.90 Current Price is $11.76 Difference: $3.14
If GUD meets the Wilsons target it will return approximately 27% (excluding dividends, fees and charges).
Current consensus price target is $15.65, suggesting upside of 33.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 51.50 cents and EPS of 76.40 cents.
At the last closing share price the estimated dividend yield is 4.38%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.39.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 74.5, implying annual growth of 14.6%.
Current consensus DPS estimate is 45.7, implying a prospective dividend yield of 3.9%.
Current consensus EPS estimate suggests the PER is 15.8.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 72.00 cents and EPS of 99.30 cents.
At the last closing share price the estimated dividend yield is 6.12%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.84.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 98.3, implying annual growth of 31.9%.
Current consensus DPS estimate is 56.2, implying a prospective dividend yield of 4.8%.
Current consensus EPS estimate suggests the PER is 12.0.

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

HLA    HEALTHIA LIMITED

Healthcare services – Overnight Price: $1.93

Shaw and Partners rates ((HLA)) as Buy (1) –

Shaw and Partners conducts a healthcare sector overview and expects the sector will materially outperform over the medium term.

The broker points to a 50m backlog in doctor visits and expects increased spending post covid will drive an imminent margin expansion of roughly 200 basis points. 

Shaw and Partners expects GP visits will recover to pre-covid levels by May/June 2022 and expects the backlog will take two years to clear. 

Add to that the fact that Australia's population is both growing and ageing, the broker expects both State and Federal governments will need to increase medical spending (the Victorian government has already announced $1.5bn to ease the elective surgery backlog and the Feds have allocated an extra $220m over four years to the MBS).

Shaw and Partners notes Healthia is leveraged to further healthcare spending and the covid recovery; expects Healthia will outpace market expectations; and considers the company cheap and a good strategic asset.

Buy rating retained. Target price edges up to $3.05 from $3.

This report was published on April 11, 2022.

Target price is $3.05 Current Price is $1.93 Difference: $1.12
If HLA meets the Shaw and Partners target it will return approximately 58% (excluding dividends, fees and charges).

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

MGV    MUSGRAVE MINERALS LIMITED

Gold & Silver – Overnight Price: $0.35

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

Ahead of Musgrave Minerals' maiden resource releases for its Big Sky and White Head Mosaic projects this quarter, Canaccord Genuity anticipates a potential total resource update of 800,000 ounces and considers 1m ounces could be realistic by the second half. 

The company also recently announced the acquisition of the Mt Magnet South project for $500,000, comprising 19 exploration and prospecting leases. The purchase nearly doubles the company's landholding. 

The Speculative Buy rating and target price of $0.70 are retained.

This report was published on April 7, 2022.

Target price is $0.70 Current Price is $0.35 Difference: $0.35
If MGV meets the Canaccord Genuity target it will return approximately 100% (excluding dividends, fees and charges).

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

MIN    MINERAL RESOURCES LIMITED

Iron Ore – Overnight Price: $59.29

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

With Mineral Resources set to commence another rapid growth phase, Goldman Sachs forecasts increased mining services volumes and elevated lithium and iron ore pricing could see the company more than double earnings to above $2bn in the next financial year. 

The company's growth strategy includes the construction of two major greenfield iron ore projects in WA, with combined capacity of 80-90m tonnes per annum, and a more than 1m tonnes per annum increase in lithium spodumene from Wodgina and Mt Marion. 

Further, external and internal mining services volumes look to increase 10-15% and more than 50% respectively, with the broker predicting Mineral Resources will increase mining services volumes 50% over the next five years. 

The broker expects the company to be free cash flow negative over the four years to sustain over -$6bn in capital expenditure. 

The rating is upgraded to Buy from Neutral and the target price increases to $70.80 from $50.00.

This report was published on April 12, 2022.

Target price is $70.80 Current Price is $59.29 Difference: $11.51
If MIN meets the Goldman Sachs target it will return approximately 19% (excluding dividends, fees and charges).
Current consensus price target is $64.29, suggesting upside of 8.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 55.00 cents and EPS of 200.00 cents.
At the last closing share price the estimated dividend yield is 0.93%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.65.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 225.9, implying annual growth of -66.4%.
Current consensus DPS estimate is 86.6, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 26.2.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 229.00 cents and EPS of 571.00 cents.
At the last closing share price the estimated dividend yield is 3.86%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.38.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 821.3, implying annual growth of 263.6%.
Current consensus DPS estimate is 297.9, implying a prospective dividend yield of 5.0%.
Current consensus EPS estimate suggests the PER is 7.2.

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

MVF    MONASH IVF GROUP LIMITED

Healthcare services – Overnight Price: $1.23

Shaw and Partners rates ((MVF)) as Buy (1) –

Shaw and Partners conducts a healthcare sector overview and expects the sector will materially outperform over the medium term.

The broker points to a 50m backlog in doctor visits and expects increased spending post covid will drive an imminent margin expansion of roughly 200 basis points. 

Shaw and Partners expects GP visits will recover to pre-covid levels by May/June 2022 and expects the backlog will take two years to clear. 

Add to that the fact that Australia's population is both growing and ageing, the broker expects both State and Federal governments will need to increase medical spending (the Victorian government has already announced $1.5bn to ease the elective surgery backlog and the Feds have allocated an extra $220m over four years to the MBS).

Shaw and Partners notes Monash IVF should be a beneficiary. The company is expanding market share at Virtus Health's ((VRT)) expense (now 20%); growing profit; is net cash and is valued at $1.45 based on the Virtus takeover offer. 

Buy rating. Target price edges up to $1.41 from $1.37.

This report was published on April 11, 2022.

Target price is $1.41 Current Price is $1.23 Difference: $0.18
If MVF meets the Shaw and Partners target it will return approximately 15% (excluding dividends, fees and charges).
Current consensus price target is $1.25, suggesting upside of 1.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 4.50 cents and EPS of 6.70 cents.
At the last closing share price the estimated dividend yield is 3.66%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.36.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 6.6, implying annual growth of 2.3%.
Current consensus DPS estimate is 4.6, implying a prospective dividend yield of 3.7%.
Current consensus EPS estimate suggests the PER is 18.6.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 4.90 cents and EPS of 7.30 cents.
At the last closing share price the estimated dividend yield is 3.98%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.85.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 6.9, implying annual growth of 4.5%.
Current consensus DPS estimate is 4.9, implying a prospective dividend yield of 4.0%.
Current consensus EPS estimate suggests the PER is 17.8.

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

PTM    PLATINUM ASSET MANAGEMENT LIMITED

Wealth Management & Investments – Overnight Price: $1.88

Bell Potter rates ((PTM)) as Hold (3) –

Platinum Asset Management continued to bleed funds in March – another -6.9% – possibly in relation to the company's China exposure following the Ukraine war.

Bell Potter was surprised by the magnitude of the outflow given the broader sector fared well during March.

The target price falls to $1.70 from $1.90, so even though the dividend yield is 10.6%, Bell Potter says investors can expect a negligible return.

Hold rating retained.

This report was published on April 8, 2022.

Target price is $1.70 Current Price is $1.88 Difference: minus $0.18 (current price is over target).
If PTM meets the Bell Potter target it will return approximately minus 10% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $2.27, suggesting upside of 20.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 20.00 cents and EPS of 19.20 cents.
At the last closing share price the estimated dividend yield is 10.64%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.79.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 21.2, implying annual growth of -24.7%.
Current consensus DPS estimate is 19.7, implying a prospective dividend yield of 10.5%.
Current consensus EPS estimate suggests the PER is 8.9.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 15.00 cents and EPS of 13.80 cents.
At the last closing share price the estimated dividend yield is 7.98%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.62.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.8, implying annual growth of -16.0%.
Current consensus DPS estimate is 17.3, implying a prospective dividend yield of 9.2%.
Current consensus EPS estimate suggests the PER is 10.6.

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

QHL    QUICKSTEP HOLDINGS LIMITED

Commercial Services & Supplies – Overnight Price: $0.73

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

Quickstep has announced a major contract award with Jetstar with an anticipated total contract value of $30-35m over three years, and Canaccord Genuity highlights the maintenance contract win is an early sign of execution on the Aftermarket Services strategy.

The company has a proven track record of leveraging long-term aerostructure contracts to fund growth strategy, according to the broker.

Further, Canaccord Genuity noted the newly acquired Tullarmarine Aftermarket Services facility offers a $40-50m revenue capacity, or $4-5m earnings, if the company can secure additional contracts. 

The rating is upgraded to Buy from Hold and the target price increases to $0.97 from $0.90.

This report was published on April 7, 2022.

Target price is $0.97 Current Price is $0.73 Difference: $0.24
If QHL meets the Canaccord Genuity target it will return approximately 33% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 EPS of 4.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.21.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 EPS of 6.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.74.

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

SYA    SAYONA MINING LIMITED

New Battery Elements – Overnight Price: $0.30

Petra Capital rates ((SYA)) as Buy (1) –

Petra Capital compares the ASX's top-10 emerging developers given the market has shifted focus to new supply as lithium prices skyrocket.

Of the three forms of Enterprise Valuation (EV) of Resources and Reserves, the broker has opted for Lithium Carbonate Equivalent to allow comparisons across all deposit types. Of the 10, only seven companies have published reserves.

Petra notes that declaring Reserves is a much higher benchmark and the peer multiple reflects a median of $1,268/t for LCE – almost twice the EV Resource median.

Brine developers have higher capital intensities than rock developers ($21,000/t to $50,000/t compared with $3,000/t to $7,000/t) but much longer life. Sayona Lithium enjoys very low capital intensity and first production is expected in early 2023.

Petra Capital reports that Sayona Lithium is restarting its spodumene operation in Quebec and will only need $75m to do so. The company also has approval for a downstream Lithium Carbonate plant on the site and expects to develop a second site at Moblan for Lithium Hydroxide to the support the North American Electric Vehicle market.

Buy rating. Target is 42c.

This report was published on April 7, 2022.

Target price is $0.42 Current Price is $0.30 Difference: $0.12
If SYA meets the Petra Capital target it will return approximately 40% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Petra Capital forecasts a full year FY22 dividend of 0.00 cents and EPS of 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.00.

Forecast for FY23:

Petra Capital forecasts a full year FY23 dividend of 0.00 cents and EPS of 4.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.50.

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

TUL    TULLA RESOURCES PLC

Gold & Silver – Overnight Price: $0.62

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

An update from Tulla Resources and joint venture partner Pantoro Limited ((PNR)) marks a 49% increase to the Norseman Gold reserve since the definitive feasibility study presented in October 2020, now totaling 12.9m tonnes of gold as noted by Canaccord Genuity.

The broker highlighted there is an immediate opportunity to extend mine life beyond the current six years. The project remains on track for first gold this year, with Canaccord Genuity noting potential for a significant re-rate in the six months prior and post first gold.

The Speculative Buy rating and target price of $1.20 are retained.

This report was published on April 7, 2022.

Target price is $1.20 Current Price is $0.62 Difference: $0.58
If TUL meets the Canaccord Genuity target it will return approximately 94% (excluding dividends, fees and charges).

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

WBC    WESTPAC BANKING CORPORATION

Banks – Overnight Price: $24.24

Bell Potter rates ((WBC)) as Hold (3) –

Bell Potter upgrades its target price for Westpac to $25 from $24 ahead of the publication of its interim result on May 9.

The broker decreases its cash earnings forecasts -6% in FY23 and -8% in FY24 to reflect forecast lower other income and higher operating expenses.

But based on risk metrics, the discount rate falls -0.25% to 10% and the dividend sustainable yield falls -5% to 4%, creating a small increase in the valuation and target price.

Hold rating retained.

This report was published on April 8, 2022.

Target price is $25.00 Current Price is $24.24 Difference: $0.76
If WBC meets the Bell Potter target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $25.44, suggesting upside of 5.0%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 120.00 cents and EPS of 168.00 cents.
At the last closing share price the estimated dividend yield is 4.95%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.43.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 153.9, implying annual growth of 3.0%.
Current consensus DPS estimate is 121.8, implying a prospective dividend yield of 5.0%.
Current consensus EPS estimate suggests the PER is 15.8.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 127.00 cents and EPS of 190.00 cents.
At the last closing share price the estimated dividend yield is 5.24%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.76.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 188.0, implying annual growth of 22.2%.
Current consensus DPS estimate is 135.5, implying a prospective dividend yield of 5.6%.
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

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