Australian Broker Call *Extra* Edition – May 10, 2022

This story features ARISTOCRAT LEISURE LIMITED, and other companies. For more info SHARE ANALYSIS: ALL

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)

ALL   CTP   KGN   MGR   MQG   NAB   NTO   NWS   PBH   REA   RMD   RRL (2)   RSG   RTR   VCX  

ALL    ARISTOCRAT LEISURE LIMITED

Gaming – Overnight Price: $31.38

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

Despite Aristocrat Leisure benefiting from a demonstrable increase in daily active users and revenue for its RAID game during its third birthday celebrations, Jarden warns April is likely to deliver a run-rate below the target set for the year.

The broker noted RAID has experience revenue and user declines since the outbreak of the Russia-Ukraine conflict, with a collective 1,500 employees based in those counties impacting on game updates and developments since early March.

The Overweight rating is retained and the target price decreases to $39.28 from $41.55.

This report was published on April 29, 2022.

Target price is $39.28 Current Price is $31.38 Difference: $7.9
If ALL meets the Jarden target it will return approximately 25% (excluding dividends, fees and charges).
Current consensus price target is $46.58, suggesting upside of 48.4%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 42.60 cents and EPS of 152.20 cents.
At the last closing share price the estimated dividend yield is 1.36%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.62.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 153.5, implying annual growth of 19.8%.
Current consensus DPS estimate is 58.8, implying a prospective dividend yield of 1.9%.
Current consensus EPS estimate suggests the PER is 20.4.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 46.60 cents and EPS of 166.50 cents.
At the last closing share price the estimated dividend yield is 1.49%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.85.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 177.2, implying annual growth of 15.4%.
Current consensus DPS estimate is 70.2, implying a prospective dividend yield of 2.2%.
Current consensus EPS estimate suggests the PER is 17.7.

Market Sentiment: 0.9
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

CTP    CENTRAL PETROLEUM LIMITED

NatGas – Overnight Price: $0.11

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

A 7% quarter-on-quarter realised price increase drove Central Petroleum to deliver an 11% revenue increase in the third quarter to $8.5m, a beat on Bell Potter's expected $8.1m. Quarterly production of 13.6 terrajoules per day was in line with forecasts. 

The company commenced drilling of its Palm Valley well in April, anticipating it will reach its deep exploration target in early June before drilling the Dingo 5 well. Bell Potter notes the company is well positioned to grow gas reserves amid a tightening east coast gas market.

The Buy rating and target price of $0.19 are retained.

This report was published on May 2, 2022.

Target price is $0.19 Current Price is $0.11 Difference: $0.08
If CTP meets the Bell Potter target it will return approximately 73% (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 0.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 12.22.

Forecast for FY23:

Bell Potter 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 27.50.

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

KGN    KOGAN.COM LIMITED

Retailing – Overnight Price: $3.43

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

A weak third quarter result from Kogan.com included a -3.8% decline in gross sales and a slight subsequent earnings loss, with Jarden noting the result represents a reversal in sales trends experienced in the first half. 

Notably, marketplace sales were up 19.8% year-on-year, but the result was offset by a decline in Third Party and Exclusive brands sales (-21.8% and -18.8 respectively). 

The result sees Jarden decrease sales forecasts -5% each for FY22 and FY23, and earnings forecasts -51% and -30% respectively. 

The Underweight rating is retained and the target price decreases to $6.42 from $7.51.

This report was published on April 29, 2022.

Target price is $6.42 Current Price is $3.43 Difference: $2.99
If KGN meets the Jarden target it will return approximately 87% (excluding dividends, fees and charges).
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 4.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 85.75.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 8.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 41.33.

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

MGR    MIRVAC GROUP

Infra & Property Developers – Overnight Price: $2.16

Jarden rates ((MGR)) as Neutral (3) –

A third quarter update from Mirvac Group indicated conditions are being well managed, with the company impacted by floods and supply chain issues, but Jarden expects issues will start to flow through.

Despite this, the company reiterated a more than 2,500 lost target, noting the second half skew which would have provided a beat is no longer expected. Consistent with other developers, Jarden notes impacts are pushing settlements into FY23.

The Underweight rating is retained and the target price decreases to $2.80 from $2.85.

This report was published on April 30, 2022.

Target price is $2.80 Current Price is $2.16 Difference: $0.64
If MGR meets the Jarden target it will return approximately 30% (excluding dividends, fees and charges).
Current consensus price target is $2.91, suggesting upside of 34.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 10.20 cents and EPS of 15.10 cents.
At the last closing share price the estimated dividend yield is 4.72%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.30.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 14.1, implying annual growth of -38.4%.
Current consensus DPS estimate is 10.2, implying a prospective dividend yield of 4.7%.
Current consensus EPS estimate suggests the PER is 15.3.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 11.00 cents and EPS of 16.00 cents.
At the last closing share price the estimated dividend yield is 5.09%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.4, implying annual growth of 9.2%.
Current consensus DPS estimate is 11.0, implying a prospective dividend yield of 5.1%.
Current consensus EPS estimate suggests the PER is 14.0.

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

MQG    MACQUARIE GROUP LIMITED

Wealth Management & Investments – Overnight Price: $182.00

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

Macquarie Group's profits were up 56% for FY22 but -2% below Goldman Sachs' forecast.

The broker cited the earnings miss was revenue driven, -4% lower than forecast and noted that the result was strong, just lower than expected.

The final dividend of 350c was lower than Goldman Sachs' forecast of 440c'. The surplus capital position rose to $10.7bn.

The broker adjusted forecasts to reflect improved results for fees, commissions, net interest income which will be offset by lower trading income and rising employment charges.

Goldman Sachs' earnings forecasts were adjusted by -0.8% and +1.5% for FY23 and FY24, respectively.

The price target has been lowered to $203.95 from $224.85. Neutral rating is retained. 

This report was published on May 6, 2022.

Target price is $203.95 Current Price is $182.00 Difference: $21.95
If MQG meets the Goldman Sachs target it will return approximately 12% (excluding dividends, fees and charges).
Current consensus price target is $202.50, suggesting upside of 11.3%(ex-dividends)
The company's fiscal year ends in March.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 585.00 cents and EPS of 1141.00 cents.
At the last closing share price the estimated dividend yield is 3.21%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.95.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1056.5, implying annual growth of -16.9%.
Current consensus DPS estimate is 606.4, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 17.2.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 645.00 cents and EPS of 1207.00 cents.
At the last closing share price the estimated dividend yield is 3.54%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.08.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1094.3, implying annual growth of 3.6%.
Current consensus DPS estimate is 623.8, implying a prospective dividend yield of 3.4%.
Current consensus EPS estimate suggests the PER is 16.6.

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

NAB    NATIONAL AUSTRALIA BANK LIMITED

Banks – Overnight Price: $31.68

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

National Australia Bank H1 FY22 earnings grew +4% which was -2% below Goldman Sachs' estimates due to lower-than-expected trading non-interest income and higher operation expenses.

The interim dividend of 73c was slightly above the broker's forecast of 72c.

Goldman Sachs raised FY22 and FY23 earnings by 0.9% and 4.1% due to better net interest margins trajectory; stronger other operating income in future years; lower bad debts, which were partly offset by higher expenses.

The broker's price target has been raised to $34.17 from $34.03 and National Australia Bank remains the preferred sector exposure.

The Buy rating is maintained.

This report was published on May 5, 2022.

Target price is $34.17 Current Price is $31.68 Difference: $2.49
If NAB meets the Goldman Sachs target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $33.42, suggesting upside of 5.5%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 150.00 cents and EPS of 211.00 cents.
At the last closing share price the estimated dividend yield is 4.73%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.01.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 207.8, implying annual growth of 7.6%.
Current consensus DPS estimate is 148.0, implying a prospective dividend yield of 4.7%.
Current consensus EPS estimate suggests the PER is 15.2.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 165.00 cents and EPS of 227.00 cents.
At the last closing share price the estimated dividend yield is 5.21%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.96.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 231.5, implying annual growth of 11.4%.
Current consensus DPS estimate is 163.1, implying a prospective dividend yield of 5.1%.
Current consensus EPS estimate suggests the PER is 13.7.

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

NTO    NITRO SOFTWARE LIMITED

IT & Support – Overnight Price: $1.24

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

A strong quarterly update from Nitro Software saw the company deliver a 40% quarter-on-quarter annual recurring revenue growth, or 61% including Connective, with Bell Potter noting the result was attributed to lower operating expenditure driven by improved efficiencies.

While full year annual recurring revenue and revenue forecasts were maintained, the company upgraded its anticipated operating loss to between -$15m and -$18m, from between -$18m and -$21m, looking to breakeven in the second half of FY23.

The Buy rating is retained and the target price decreases to $2.50 from $2.75.

This report was published on May 2, 2022.

Target price is $2.50 Current Price is $1.24 Difference: $1.26
If NTO meets the Bell Potter target it will return approximately 102% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 18.22 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 6.81.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 11.83 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 10.48.

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

NWS    NEWS CORPORATION

Print, Radio & TV – Overnight Price: $24.25

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

News Corp's Q3 FY22 proved largely in line with Goldman Sachs' estimates. The broker noted the weaker results from Books and Real Estate were offset by stronger results from Dow Jones and News Media.

Goldman Sachs highlighted that, excluding the softer than expected revenues from REA Group, the increased investment in Dow Jones and News Media in Q4 FY22 and the slowdown in the revenue growth for Move has lead the broker to lowering expectations.

The broker has lowered earnings forecasts by -3% and -5% for FY22 and FY23, respectively. The price target is lowered by -3% to $40.20 from $41.30.

The Buy rating is maintained as the broker sees significant value.

This report was published on May 8, 2022.

Target price is $40.20 Current Price is $24.25 Difference: $15.95
If NWS meets the Goldman Sachs target it will return approximately 66% (excluding dividends, fees and charges).
Current consensus price target is $39.63, suggesting upside of 63.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 EPS of 125.22 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.37.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 126.6, implying annual growth of N/A.
Current consensus DPS estimate is 30.5, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 19.2.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 EPS of 118.42 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.48.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 153.4, implying annual growth of 21.2%.
Current consensus DPS estimate is 32.4, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 15.8.

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

PBH    POINTSBET HOLDINGS LIMITED

Gaming – Overnight Price: $2.70

Jarden rates ((PBH)) as Buy (1) –

Jarden noted a largely on-track third quarter update from PointsBet Holdings, including 54% year-on-year group turnover growth. Geographically, active clients in the US were up 96% year-on-year, while in Australia active clients were up 47%.

Looking ahead, the broker noted the company looks to take a more streamlined approach to expansion in the US that should allow improved cash burn and return on investment, now targeting four new state launches rather than seven through to the end of 2022.

The Buy rating is retained and the target price decreases to $8.10 from $8.97.

This report was published on April 29, 2022.

Target price is $8.10 Current Price is $2.70 Difference: $5.4
If PBH meets the Jarden target it will return approximately 200% (excluding dividends, fees and charges).
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 96.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 2.79.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 97.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 2.78.

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

REA    REA GROUP LIMITED

Real Estate – Overnight Price: $107.28

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

REA Group revenues were lower -7% than Goldman Sachs' estimates for Q3 FY22. 

The broker noted forecast growth in REA Group's residential 'for-sale' business' was offset by weaker results in the Commercial and Developer business.

Goldman Sachs believes the negative macro trends impacting on the Commercial and Developer businesses are timing related due to macro headwinds in the current year and the trend should reverse and normalise in the future.

Thr broker has reduced earnings by -3% for FY22 and FY23 reflecting lower near term commercial/rental listings and greater investment in India.

The price target is reduced by -4% to $164 and a Buy rating is maintained.

This report was published on May 8, 2022.

Target price is $164.00 Current Price is $107.28 Difference: $56.72
If REA meets the Goldman Sachs target it will return approximately 53% (excluding dividends, fees and charges).
Current consensus price target is $151.10, suggesting upside of 40.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 154.00 cents and EPS of 309.00 cents.
At the last closing share price the estimated dividend yield is 1.44%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 34.72.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 312.9, implying annual growth of 27.9%.
Current consensus DPS estimate is 166.7, implying a prospective dividend yield of 1.6%.
Current consensus EPS estimate suggests the PER is 34.3.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 185.00 cents and EPS of 336.00 cents.
At the last closing share price the estimated dividend yield is 1.72%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.93.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 356.3, implying annual growth of 13.9%.
Current consensus DPS estimate is 191.9, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 30.1.

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

RMD    RESMED INC

Medical Equipment & Devices – Overnight Price: $28.38

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

Ongoing shortages of semiconductor chips have impacted on device sales and driven ResMed to decrease its full year guidance for benefit from the Philips recall by -$100m to $200-250m after delivering a -12.4% miss to Jarden's third quarter net profit expectations. 

The broker expects the result will weigh on the stock, but highlights issues should be transitory and expects ResMed to win share as conditions improve. Given the miss, Jarden decreases its earnings per share estimates -8.9%, -12.5% and -10.4% through to FY24.

The Overweight rating is retained and the target price decreases to $35.39 from $38.91.

This report was published on April 29, 2022.

Target price is $35.39 Current Price is $28.38 Difference: $7.01
If RMD meets the Jarden target it will return approximately 25% (excluding dividends, fees and charges).
Current consensus price target is $35.44, suggesting upside of 24.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 228.42 cents and EPS of 776.07 cents.
At the last closing share price the estimated dividend yield is 8.05%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 3.66.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 82.6, implying annual growth of N/A.
Current consensus DPS estimate is 24.0, implying a prospective dividend yield of 0.8%.
Current consensus EPS estimate suggests the PER is 34.4.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 228.42 cents and EPS of 927.40 cents.
At the last closing share price the estimated dividend yield is 8.05%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 3.06.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 100.0, implying annual growth of 21.1%.
Current consensus DPS estimate is 25.2, implying a prospective dividend yield of 0.9%.
Current consensus EPS estimate suggests the PER is 28.4.

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

RRL    REGIS RESOURCES LIMITED

Gold & Silver – Overnight Price: $1.86

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

Hoping for improved production and cost performance from Regis Resources in the March quarter given company commentary suggesting a second half weighting, Bell Potter has been disappointed by both Duketon and Tropicana missing estimated production.

Following production of 103,100 ounces at an all-in sustaining cost (ASIC) of $1,574 per ounce, the broker notes there remains possibility of production and cost performance improvement in the final quarter, although Bell Potter notes the company is likely headed for the low end of production guidance, while it would do well to meet ASIC guidance.

Bell Potter notes the result does not put the company's debt repayments at risk yet, but significant production growth will be needed in FY23 to avoid this.

The Buy rating is retained and the target price decreases to $3.00 from $3.15.

This report was published on May 2, 2022.

Target price is $3.00 Current Price is $1.86 Difference: $1.14
If RRL meets the Bell Potter target it will return approximately 61% (excluding dividends, fees and charges).
Current consensus price target is $2.31, suggesting upside of 24.2%(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 8.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.88.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.1, implying annual growth of -69.3%.
Current consensus DPS estimate is 1.7, implying a prospective dividend yield of 0.9%.
Current consensus EPS estimate suggests the PER is 23.0.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 5.00 cents and EPS of 23.20 cents.
At the last closing share price the estimated dividend yield is 2.69%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.02.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.8, implying annual growth of 107.4%.
Current consensus DPS estimate is 4.5, implying a prospective dividend yield of 2.4%.
Current consensus EPS estimate suggests the PER is 11.1.

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

---

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

Regis Resources' March quarter production was a miss for Canaccord Genuity, down -12% on the broker's forecast, although costs remained largely in line, with the broker highlighting ongoing waste mining at Tropicana led to lower than expected grades in the quarter.

Full year production and all-in costs were retained, although elevated diesel and consumable prices could present risk to the $1,500 per ounce top end of costs guidance. Canaccord Genuity reiterated its all-in costs forecast of $1,518 per ounce, above company guidance.

The broker expects a return to free cash flow would renew conviction in the stock. The Buy rating is retained and the target price decreases to $2.60 from $2.80.

This report was published on April 28, 2022.

Target price is $2.60 Current Price is $1.86 Difference: $0.74
If RRL meets the Canaccord Genuity target it will return approximately 40% (excluding dividends, fees and charges).
Current consensus price target is $2.31, suggesting upside of 24.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 2.00 cents and EPS of 12.00 cents.
At the last closing share price the estimated dividend yield is 1.08%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.1, implying annual growth of -69.3%.
Current consensus DPS estimate is 1.7, implying a prospective dividend yield of 0.9%.
Current consensus EPS estimate suggests the PER is 23.0.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 6.00 cents and EPS of 21.00 cents.
At the last closing share price the estimated dividend yield is 3.23%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.86.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.8, implying annual growth of 107.4%.
Current consensus DPS estimate is 4.5, implying a prospective dividend yield of 2.4%.
Current consensus EPS estimate suggests the PER is 11.1.

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

RSG    RESOLUTE MINING LIMITED

Gold & Silver – Overnight Price: $0.31

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

Resolute Mining has delivered March quarter production of 82,000 ounces at an all-in sustaining cost of US$1,383 per ounce, a beat on Canaccord Genuity's expected 72,000 ounces at US$1,679 per ounce. The broker noted an additional 9,000 ounces recovered from gold in circuit drove the result, which would otherwise be largely in line.

With company management commenting on improved operational performance at its Syama project, Canaccord Genuity expects the site can deliver material quarterley gold production increases and sustain free cash flow moving forward.

The broker anticipates the company could reach net cash by the June quarter FY23. The Buy rating is retained and the target price decreases to $0.95 from $1.10.

This report was published on April 28, 2022.

Target price is $0.95 Current Price is $0.31 Difference: $0.64
If RSG meets the Canaccord Genuity target it will return approximately 206% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of 1.36 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.79.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 2.72 cents and EPS of 4.08 cents.
At the last closing share price the estimated dividend yield is 8.77%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.60.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

RTR    RUMBLE RESOURCES LIMITED

Mining – Overnight Price: $0.36

Bell Potter rates ((RTR)) as Initiation of coverage with Buy (1) –

Bell Potter initiates coverage on Western Australian minerals exploration company, Rumble Resources. The company is focused on exploring zinc, lead and silver base metal systems at its Earaheedy project, having identified 12km of mineralisation to date. 

The broker anticipates coming years will see Rumble Resources outline and de-risk a large, valuable mining operation. While Bell Potter assumes Earaheedy could offer 4m tonnes per annum over a 20 year lifespan, the company's portfolio also includes exposure to gold, base metals and lithium. 

Bell Potter initiates with a Buy rating and a target price of $0.60.

This report was published on May 2, 2022.

Target price is $0.60 Current Price is $0.36 Difference: $0.24
If RTR 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 4.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 9.00.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 5.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 7.20.

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

VCX    VICINITY CENTRES

REITs – Overnight Price: $1.79

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

Goldman Sachs noted that Vicinity Centres 3Q FY22 showed sales up 11.2% and portfolio visitations reached 76% of pre-covid levels up from 55% in the Q1 FY22.

The broker noted Vicinity Centres reported 186 leasing deals completed with 74% of the new leasing deals having a 5% fixed annual rental escalation. Occupancy level remained flat at 98.2%.

Vicinity Centres reaffirmed its FY22 earnings guidance of 11.8-12.6c, and with improving visitation data and cash collection rates Goldman Sachs comments the REIT is well positioned with balance sheet gearing of 26%, $1.8bn of liquidity and 80% of the debt hedged.

Risks to the broker's forecasts and price target include a weaker-than-expected retail sales environment and development pipeline execution.

The Buy rating is unchanged and the target price is $2.01.

This report was published on May 5, 2022.

Target price is $2.01 Current Price is $1.79 Difference: $0.22
If VCX meets the Goldman Sachs target it will return approximately 12% (excluding dividends, fees and charges).
Current consensus price target is $1.93, suggesting upside of 7.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 EPS of 12.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.92.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 11.7, implying annual growth of N/A.
Current consensus DPS estimate is 9.3, implying a prospective dividend yield of 5.2%.
Current consensus EPS estimate suggests the PER is 15.3.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 EPS of 13.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.77.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 13.3, implying annual growth of 13.7%.
Current consensus DPS estimate is 10.7, implying a prospective dividend yield of 6.0%.
Current consensus EPS estimate suggests the PER is 13.5.

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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