Australian Broker Call *Extra* Edition – Apr 22, 2022

This story features ATLAS ARTERIA, and other companies. For more info SHARE ANALYSIS: ALX

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)

ALX   BGA   COE (2)   CRN   CYG   DGL   ERD   EVS   HPG   HUB (2)   PPS   RHC   RIO (2)   SLA   SMP   STO   WHC (2)  

ALX    ATLAS ARTERIA

Infrastructure & Utilities – Overnight Price: $6.80

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

Atlas Arteria's March-quarter operational result appears to have met Jarden's expectations.

The broker notes the Dulles Greenway recovery is slower than the French recovery and the oil price strength does not appear to have impacted traffic volumes.

Overall, Jarden appreciates the valuation and dividend yield and retains an Overweight rating. Target price slips to $7 from $7.20 due to changes in Jarden's risk-free rate and weighted average cost of capital assumptions.

This report was published on April 20, 2022.

Target price is $7.00 Current Price is $6.80 Difference: $0.2
If ALX meets the Jarden target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $6.78, suggesting downside of -0.4%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 37.20 cents and EPS of 38.00 cents.
At the last closing share price the estimated dividend yield is 5.47%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.89.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 52.0, implying annual growth of 204.6%.
Current consensus DPS estimate is 41.4, implying a prospective dividend yield of 6.1%.
Current consensus EPS estimate suggests the PER is 13.1.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 49.10 cents and EPS of 47.50 cents.
At the last closing share price the estimated dividend yield is 7.22%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.32.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 57.0, implying annual growth of 9.6%.
Current consensus DPS estimate is 48.1, implying a prospective dividend yield of 7.1%.
Current consensus EPS estimate suggests the PER is 11.9.

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

BGA    BEGA CHEESE LIMITED

Dairy – Overnight Price: $5.15

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

Bega Cheese's trading update disappointed Goldman Sachs, FY22 earnings guidance falling -4% shy of consensus due to intensifying competition for farmgate milk, which is expected to continue throughout 2022.

The broker notes dairy-product inflation has been unable to outpace the milk price (Bega being among the many processors to raise prices).

Goldman Sachs pegs a target price of $5 which compares with the last entry in the FNArena database in September of $6.40.

Neutral rating retained.

This report was published on April 20, 2022.

Target price is $5.00 Current Price is $5.15 Difference: minus $0.15 (current price is over target).
If BGA meets the Goldman Sachs target it will return approximately minus 3% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $5.18, suggesting upside of 0.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 EPS of 11.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 46.82.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.1, implying annual growth of -41.1%.
Current consensus DPS estimate is 11.0, implying a prospective dividend yield of 2.1%.
Current consensus EPS estimate suggests the PER is 32.0.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 EPS of 23.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.39.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 24.3, implying annual growth of 50.9%.
Current consensus DPS estimate is 12.0, implying a prospective dividend yield of 2.3%.
Current consensus EPS estimate suggests the PER is 21.2.

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

COE    COOPER ENERGY LIMITED

Crude Oil – Overnight Price: $0.31

Bell Potter rates ((COE)) as Buy (1) –

Cooper Energy's March-quarter trading update pleased Bell Potter, production and prices outpacing operational imposts, and management tightened guidance to the top-end of ranges.

The broker notes production rose at Sole and expects it will increase again after upgrades later this year and that the company is renegotiating its debt facility to help fund Otway Basin.

Bell Potter believes overall production should continue to rise, meeting a tightening south-east-coast Australian domestic market.

Buy rating and 38c target price retained.

This report was published on April 20, 2022.

Target price is $0.38 Current Price is $0.31 Difference: $0.07
If COE meets the Bell Potter target it will return approximately 23% (excluding dividends, fees and charges).
Current consensus price target is $0.28, suggesting downside of -8.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 0.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 62.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -11.1, 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 N/A.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.60 cents and EPS of 2.40 cents.
At the last closing share price the estimated dividend yield is 1.94%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.92.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 10.4, 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 3.0.

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

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Jarden rates ((COE)) as Downgrade to Neutral fro Overweight (3) –

Cooper Energy's March-quarter results appear to have outpaced Jarden's forecasts by a decent clip.

The broker is awaiting clarity on several fronts: negotiations on the Orbost Gas Processing Plant with APA Group ((APA)); the implications for Sole and a possible capital raising; the undeveloped Manta gas field; and the end of delays to the Otway Basin offshore exploration.

Jarden downgrades rating to Neutral from Overweight in response to the recent share-price rally. Target price is unchanged at 29c.

This report was published on April 21, 2022.

Target price is $0.29 Current Price is $0.31 Difference: minus $0.02 (current price is over target).
If COE meets the Jarden target it will return approximately minus 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $0.28, suggesting downside of -8.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 0.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 77.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -11.1, 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 N/A.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 0.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 155.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 10.4, 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 3.0.

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

CRN    CORONADO GLOBAL RESOURCES INC

Coal – Overnight Price: $2.26

Bell Potter rates ((CRN)) as Buy (1) –

Bell Potter sharply upgrades Coronado Global Resources' target price to $2.55 from $1.65 after marking to market coal prices for the March quarter and upgrading its price forecasts for metallurgical coal.

EPS forecasts rise 146% in FY22; 256% in FY23; and the FY24 forecast soars to 20.6c from 2.2c.

The broker consider the pace of the company's balance-sheet repair to be remarkable and expects Coronado is likely to return funds to shareholders in the absence of acquisitions or project developments.

Buy recommendation retained, the broker expecting commodity prices will remain firm in the near term.

This report was published on April 20, 2022.

Target price is $2.55 Current Price is $2.26 Difference: $0.29
If CRN meets the Bell Potter target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $2.49, suggesting upside of 10.0%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 39.01 cents and EPS of 121.36 cents.
At the last closing share price the estimated dividend yield is 17.26%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 1.86.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 35.8, implying annual growth of N/A.
Current consensus DPS estimate is 15.5, implying a prospective dividend yield of 6.9%.
Current consensus EPS estimate suggests the PER is 6.3.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 48.22 cents and EPS of 51.20 cents.
At the last closing share price the estimated dividend yield is 21.34%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.41.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 14.7, implying annual growth of -58.9%.
Current consensus DPS estimate is 11.7, implying a prospective dividend yield of 5.2%.
Current consensus EPS estimate suggests the PER is 15.4.

This company reports in USD. 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

CYG    COVENTRY GROUP LIMITED

Hardware & Equipment – Overnight Price: $1.54

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

Coventry Group's March-quarter trading update slightly outpaced Shaw and Partners' forecasts, revenue rising in the face of tough trading conditions. Management confirmed guidance.

The broker attributes the beat  to a strong inventory build and service proposition, and expects this should lead to company increasing market share at the expense of less well-stocked peers. Accretive acquisitions also supported revenue.

Shaw and Partners expects earnings will continue to improve in the June quarter and believes an equity raising to fund an acquisition would reduce a key risk and provide another catalyst (the broker says the balance sheet remains solid but is most likely at capacity).

Buy rating and $2.33 target price retained.

This report was published on April 21, 2022.

Target price is $2.33 Current Price is $1.54 Difference: $0.79
If CYG meets the Shaw and Partners target it will return approximately 51% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 3.00 cents and EPS of 11.80 cents.
At the last closing share price the estimated dividend yield is 1.95%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.05.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 4.00 cents and EPS of 16.80 cents.
At the last closing share price the estimated dividend yield is 2.60%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.17.

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

DGL    DGL GROUP LIMITED

Commercial Services & Supplies – Overnight Price: $4.11

Bell Potter rates ((DGL)) as Buy (1) –

DGL Group has upgraded FY22 guidance for the second time, substantially outpacing Bell Potter and consensus estimates, thanks to a strong manufacturing performance.

Bell Potter sheets the upgrade back to growing scale and capability in DGL's Ag-chem division, which should support the company's push into new client relationships, higher margin acquisitions, and price increases.

EPS forecasts rise 30% in FY22 and 11% in FY23. Buy rating retained. Target price rises to $4.30 from $3.50.

This report was published on April 20, 2022.

Target price is $4.30 Current Price is $4.11 Difference: $0.19
If DGL meets the Bell Potter target it will return approximately 5% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter 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 39.52.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of 10.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 37.71.

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

ERD    EROAD LIMITED

Transportation & Logistics – Overnight Price: $2.65

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

Jarden transfers coverage of EROAD to Guy Hooper.

The broker notes CEO Steve Newman resigned recently, following hot on the heels of the CFO's resignation in February, and the company expects to appoint a new CEO this half.

Jarden says the moves were disappointing and deserved a share-price caning but also believes the sell-off is overdone. Integration is expected to be the core focus of the new management team.

Overweight rating retained, but Jarden cuts its target price -45% to NZ$3.77 from NZ$6.77 in line with revised earnings forecasts and changes to the broker's weighted average cost of capital assumptions.

This report was published on April 20, 2022.

Current Price is $2.65. Target price not assessed.
The company's fiscal year ends in March.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 0.00 cents and EPS of 1.04 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 255.79.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 0.00 cents and EPS of 8.01 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 33.10.

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

EVS    ENVIROSUITE LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $0.15

Bell Potter rates ((EVS)) as Buy (1) –

Envirosuite's March-quarter sales update met Bell Potter's forecasts, annual recurring revenue continuing to improve thanks to growth in each division.

A negative currency movement meant the result was flat on the previous quarter.

The company also announced that WA's Water Corporation has extended Envirosuite's SeweX product to a fourth site, improving the prospect of a wider rollout, in the broker's view.

Buy rating and 25c target price are retained, the broker spying strong catalysts in the June quarter.

This report was published on April 20, 2022.

Target price is $0.25 Current Price is $0.15 Difference: $0.1
If EVS meets the Bell Potter target it will return approximately 67% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 1.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 12.50.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 15.00.

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

HPG    HIPAGES GROUP HOLDINGS LIMITED

Online media & mobile platforms – Overnight Price: $1.43

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

Goldman Sachs expects an incremental improvement from Hipages Group's March quarter results, noting growing momentum in net tradie ads, but overall believes it will be a softer quarter given tradie supply challenges.

Buy rating retained. Target price is steady at $3.60 and compares with the last entry in the FNArena database in November of $4.95.

This report was published on April 20, 2022.

Target price is $3.60 Current Price is $1.43 Difference: $2.17
If HPG meets the Goldman Sachs target it will return approximately 152% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 0.00 cents and EPS of 0.00 cents.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 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 23.83.

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

HUB    HUB24 LIMITED

Wealth Management & Investments – Overnight Price: $24.93

Jarden rates ((HUB)) as Neutral (3) –

HUB24's March-quarter result missed Jarden's forecasts by a decent clip as share-market weakness and covid disruptions aggravated  seasonal weakness.

While flow momentum slowed sharply, funds under management finished just -2% shy of the broker and hence Jarden's earnings forecasts are unchanged. 

Jarden expects higher rates will support FY23 earnings. 

Neutral rating retained. Target price slips to $28.45 from $28.70.

This report was published on April 19, 2022.

Target price is $28.45 Current Price is $24.93 Difference: $3.52
If HUB meets the Jarden target it will return approximately 14% (excluding dividends, fees and charges).
Current consensus price target is $33.27, suggesting upside of 33.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 20.54 cents and EPS of 45.20 cents.
At the last closing share price the estimated dividend yield is 0.82%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 55.15.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 42.7, implying annual growth of 235.7%.
Current consensus DPS estimate is 17.6, implying a prospective dividend yield of 0.7%.
Current consensus EPS estimate suggests the PER is 58.4.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 30.20 cents and EPS of 67.90 cents.
At the last closing share price the estimated dividend yield is 1.21%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 36.72.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 58.9, implying annual growth of 37.9%.
Current consensus DPS estimate is 24.4, implying a prospective dividend yield of 1.0%.
Current consensus EPS estimate suggests the PER is 42.3.

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

Hub24's March-quarter net flows rose 36% to $2.6bn, funds under administration up 33% year-on-year, slightly shy of Shaw and Partners' forecast but much faster than peers.

The broker expects flows will remain under pressure in the June quarter as rate tightening, covid, geopolitical tension and market uncertainty take their toll, and notes the Class acquisition is performing to expectations.

Shaw and Partners spies a bundle of catalysts in the June quarter, which it says should cause investors to relax their focus on flows, notably: an acceleration of net flows; Class accretion outpacing management's forecast; IOOF transition continuation; and the progression of a future cash margin arrangement (the existing agreement expires in December).

FY22 forecasts fall -2.3% in FY22; and are fairly steady in FY23 and FY24.

Target price eases to $38 from $37.80 a share. Buy rating retained.

This report was published on April 20, 2022.

Target price is $37.80 Current Price is $24.93 Difference: $12.87
If HUB meets the Shaw and Partners target it will return approximately 52% (excluding dividends, fees and charges).
Current consensus price target is $33.27, suggesting upside of 33.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 15.40 cents and EPS of 42.50 cents.
At the last closing share price the estimated dividend yield is 0.62%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 58.66.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 42.7, implying annual growth of 235.7%.
Current consensus DPS estimate is 17.6, implying a prospective dividend yield of 0.7%.
Current consensus EPS estimate suggests the PER is 58.4.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 22.50 cents and EPS of 56.30 cents.
At the last closing share price the estimated dividend yield is 0.90%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 44.28.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 58.9, implying annual growth of 37.9%.
Current consensus DPS estimate is 24.4, implying a prospective dividend yield of 1.0%.
Current consensus EPS estimate suggests the PER is 42.3.

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

PPS    PRAEMIUM LIMITED

Wealth Management & Investments – Overnight Price: $0.68

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

Praemium's March-quarter outpaced Shaw and Partners' forecasts on every Australian metric after adjusting for FX movements.

Quarterly inflows of $0.7bn in a seasonally weaker quarter impressed Shaw and Partners but the broker expects the company will be sin-binned in the short term due to rising costs.

Buy rating retained, the broker noting the company is trading at a massive discount to peers and half the recent bid price of $1.50 and has only improved since.

Buy rating and $1.30 target price retained.

This report was published on April 20, 2022.

Target price is $1.30 Current Price is $0.68 Difference: $0.62
If PPS meets the Shaw and Partners target it will return approximately 91% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 0.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 340.00.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 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 75.56.

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

RHC    RAMSAY HEALTH CARE LIMITED

Healthcare services – Overnight Price: $82.99

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

Equity company KKR has made a takeover bid for Ramsay Health Care in what Wilsons described as an attractive $88.00 per share offer. The broker expects the offer, which values shareholder equity at $20bn and is a 32% premium to international private hospital listed peers, is likely to succeed.

Wilsons also notes the option to take up scrip in the KKR Consortium as part of consideration could be attractive

The Market Weight rating and target price of $66.37 are retained.

This report was published on April 21, 2022.

Target price is $66.37 Current Price is $82.99 Difference: minus $16.62 (current price is over target).
If RHC 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 $77.00, suggesting downside of -7.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 125.00 cents and EPS of 181.90 cents.
At the last closing share price the estimated dividend yield is 1.51%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 45.62.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 169.9, implying annual growth of -12.1%.
Current consensus DPS estimate is 121.0, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 48.8.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 150.00 cents and EPS of 270.80 cents.
At the last closing share price the estimated dividend yield is 1.81%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.65.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 258.3, implying annual growth of 52.0%.
Current consensus DPS estimate is 149.2, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 32.1.

Market Sentiment: 0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

RIO    RIO TINTO LIMITED

Bulks – Overnight Price: $116.36

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

Rio Tinto's March-quarter result disappointed consensus and Goldman Sachs, as iron ore and copper production fell sharply due to continuing labour shortages and equipment problems at Robe River and Gudai-Darri.

Elsewhere, the Simandou iron ore framework agreement has been signed by Simfer (a joint venture in which Rio Tinto holds 45%) and workforce levels at Oyu Tolgoi improved, the project hitting several milestones.

Goldman Sachs cuts EPS forecasts -2% in 2022; and -1% in 2023.

Target price slips -1% to $135.10. Buy rating retained, the broker appreciating the valuation, dividend yield and low-emission aluminium business, and forecasting a return to production growth this year and stronger iron ore prices.

In particular, the broker believes the ELYSIS inert anode technology for aluminium could be worth billions.

This report was published on April 20, 2022.

Target price is $135.10 Current Price is $116.36 Difference: $18.74
If RIO meets the Goldman Sachs target it will return approximately 16% (excluding dividends, fees and charges).
Current consensus price target is $125.21, suggesting upside of 7.6%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 1259.65 cents and EPS of 1525.13 cents.
At the last closing share price the estimated dividend yield is 10.83%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.63.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1731.6, implying annual growth of N/A.
Current consensus DPS estimate is 1200.0, implying a prospective dividend yield of 10.3%.
Current consensus EPS estimate suggests the PER is 6.7.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 1191.93 cents and EPS of 1316.54 cents.
At the last closing share price the estimated dividend yield is 10.24%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.84.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1286.0, implying annual growth of -25.7%.
Current consensus DPS estimate is 886.0, implying a prospective dividend yield of 7.6%.
Current consensus EPS estimate suggests the PER is 9.0.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

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Shaw and Partners rates ((RIO)) as Hold (3) –

Rio Tinto's March-quarter trading update missed Shaw and Partners and consensus forecast, high commodity prices unable to mask the company's operational shortcomings. Production guidance is reaffirmed.

Shaw and Partners says the company is a far cry from being one of the best global mining operators and industry steward.

Having said that, the broker expects production volumes will rise in the second half as Gudai-Darri ramps up, that commodities prices should remain strong for now, and that the miner has likely bottomed.

Target prices edges up to $105. This compares with the last entry in the FNArena data base in January of $100. Hold rating retained.

This report was published on April 21, 2022.

Target price is $105.00 Current Price is $116.36 Difference: minus $11.36 (current price is over target).
If RIO meets the Shaw and Partners target it will return approximately minus 10% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $125.21, suggesting upside of 7.6%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 1707.98 cents and EPS of 1713.26 cents.
At the last closing share price the estimated dividend yield is 14.68%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.79.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1731.6, implying annual growth of N/A.
Current consensus DPS estimate is 1200.0, implying a prospective dividend yield of 10.3%.
Current consensus EPS estimate suggests the PER is 6.7.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 1146.82 cents and EPS of 1193.55 cents.
At the last closing share price the estimated dividend yield is 9.86%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.75.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1286.0, implying annual growth of -25.7%.
Current consensus DPS estimate is 886.0, implying a prospective dividend yield of 7.6%.
Current consensus EPS estimate suggests the PER is 9.0.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

SLA    SILK LASER AUSTRALIA LIMITED

Healthcare services – Overnight Price: $2.75

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

Wilsons finds Silk Laser Australia's more than -20% share price decline in the last three months to be unjustified. The broker notes Silk Laser Australia has been tied to declines from retail discretionary peers, but notes the company is less discretionary than the market is assuming.

The broker notes more than fifteen years of data from the US shows Botox and filler treatments are largely insulated from recessions, with the income bracket of core customers for these treatments less likely to be impacted in a recessionary environment.

Wilsons has moderated its expected growth to account for persisting softness in West and South Australia in the second half.

The Overweight rating and target price of $5.25 are retained.

This report was published on April 21, 2022.

Target price is $5.25 Current Price is $2.75 Difference: $2.5
If SLA meets the Wilsons target it will return approximately 91% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of 15.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.63.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of 23.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.85.

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

SMP    SMARTPAY HOLDINGS LIMITED

Business & Consumer Credit – Overnight Price: $0.68

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

Smartpay's March-quarter results beat Shaw and Partners' forecasts on most metrics.

Australian acquiring transactional revenue outpacing by 9%, despite omicron and floods gross margins remained strong. The company reported record customer growth.

The broker's prognosis is positive, expecting the structural jaws between cash and digital payments will continue to support growth.

EPS forecasts rise 2.6% in FY22, 2% in FY23 and 1.6% in FY24.

Buy rating and $1.20 target price retained.

This report was published on April 21, 2022.

Target price is $1.20 Current Price is $0.68 Difference: $0.52
If SMP meets the Shaw and Partners target it will return approximately 76% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of 0.28 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 240.28.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of 1.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 40.09.

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

STO    SANTOS LIMITED

NatGas – Overnight Price: $8.37

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

Santos has announced a US$250m on-market buyback and a new, more complex dividend policy, possibly in response to investors switching into Woodside Petroleum ((WPL)) after the company issued disappointing 2022 guidance, speculates Jarden.

Jarden says the new dividend policy targets better returns to shareholders, and should bring the share price into line with outperforming Woodside.

The broker nearly doubles its 2023 dividend forecast – equating to a 4.9% yield. Jarden also expects Woodside will be likely to consider capital management post the BHP ((BHP)) Petroleum merger.

The buyback surprised Jarden, given the share price is trading at a two-year high and gearing is only slightly above target, but the broker expects this might also help remedy recent share-price underperformance.

Overweight rating retained. Target price is steady at $8.55.

This report was published on April 20, 2022.

Target price is $8.55 Current Price is $8.37 Difference: $0.18
If STO meets the Jarden target it will return approximately 2% (excluding dividends, fees and charges).
Current consensus price target is $9.74, suggesting upside of 16.4%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 30.88 cents and EPS of 98.33 cents.
At the last closing share price the estimated dividend yield is 3.69%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.51.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 105.8, implying annual growth of N/A.
Current consensus DPS estimate is 26.2, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 7.9.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 39.96 cents and EPS of 66.78 cents.
At the last closing share price the estimated dividend yield is 4.77%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.53.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 84.1, implying annual growth of -20.5%.
Current consensus DPS estimate is 24.3, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 10.0.

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

WHC    WHITEHAVEN COAL LIMITED

Coal – Overnight Price: $4.80

Bell Potter rates ((WHC)) as Buy (1) –

Whitehaven Coal's March-quarter production report missed Bell Potter's forecasts but still represented a strong rebound on the prior quarter.

Management reiterates FY22 guidance and the broker notes the company's product quality and pricing have improved sharply.

The company's balance sheet staged a turnaround, moving to a net cash position of $161m, compared with net debt of $403m at the end of December, thanks to current record coal prices.

The broker marks to market coal prices and upgrades forecasts for thermal coal. EPS forecasts rise 87% in FY22; 87% in FY23 and 267% in FY24.

Target price rises to $4.40 from $3.60. Buy rating retained.

This report was published on April 20, 2022.

Target price is $4.40 Current Price is $4.80 Difference: minus $0.4 (current price is over target).
If WHC meets the Bell Potter target it will return approximately minus 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $5.47, suggesting upside of 13.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 69.00 cents and EPS of 139.30 cents.
At the last closing share price the estimated dividend yield is 14.38%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 3.45.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 138.7, implying annual growth of N/A.
Current consensus DPS estimate is 39.4, implying a prospective dividend yield of 8.2%.
Current consensus EPS estimate suggests the PER is 3.5.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 87.00 cents and EPS of 122.80 cents.
At the last closing share price the estimated dividend yield is 18.13%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 3.91.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 119.3, implying annual growth of -14.0%.
Current consensus DPS estimate is 40.2, implying a prospective dividend yield of 8.4%.
Current consensus EPS estimate suggests the PER is 4.0.

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

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

Whitehaven Coal's March-quarter result pleased Goldman Sachs, production rising despite weather and labour challenges. Management reiterated guidance.

The company held $161m in cash at the end of the March quarter, compared to $403m of net debt at the end of December, and after the buyback, highlighting strong free cash flow.

The broker expects the company will hit a record $1bn in net cash by the end of June, allowing it to pay a 50c final dividend. 

EPS forecasts slip -1% in FY22, FY23 and FY24. Target price eases to $5.20 from $5.30.

Buy rating retained, the broker believing the company represents a compelling free-cash-flow, capital returns and degearing proposition.

This report was published on April 20, 2022.

Target price is $5.20 Current Price is $4.80 Difference: $0.4
If WHC meets the Goldman Sachs target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $5.47, suggesting upside of 13.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 58.00 cents and EPS of 158.00 cents.
At the last closing share price the estimated dividend yield is 12.08%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 3.04.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 138.7, implying annual growth of N/A.
Current consensus DPS estimate is 39.4, implying a prospective dividend yield of 8.2%.
Current consensus EPS estimate suggests the PER is 3.5.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 52.00 cents and EPS of 107.00 cents.
At the last closing share price the estimated dividend yield is 10.83%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.49.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 119.3, implying annual growth of -14.0%.
Current consensus DPS estimate is 40.2, implying a prospective dividend yield of 8.4%.
Current consensus EPS estimate suggests the PER is 4.0.

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

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