Australian Broker Call *Extra* Edition – May 23, 2022

This story features LIFE360 INC, and other companies. For more info SHARE ANALYSIS: 360

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)

360   ALQ   AML   APE   ARG   BSL (2)   CHN   GDF   IDX   MBH   SEK   SGM   SHV   SKO  

360    LIFE360, INC

Software & Services – Overnight Price: $3.89

Bell Potter rates ((360)) as Buy (1) –

Life360's management reiterated 2022 guidance at its annual general and expects to finish 2022 with cash and equivalents in the range of US$65m-US$70m (a miss on Bell Potter's forecasts of US$72m).

But all is good given the broker had not included cash outflows of $8m, making the net result a slight beat.

Buy rating and $7.50 target price retained.

This report was published on May 20, 2022.

Target price is $7.50 Current Price is $3.89 Difference: $3.61
If 360 meets the Bell Potter target it will return approximately 93% (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 36.03 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 10.80.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 15.56 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 25.00.

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

ALQ    ALS LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $12.17

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

Ahead of ALS' results release, Jarden notes the company has marginally outperformed the market in the past two months after upgrading full year earnings guidance to 1% ahead of consensus at $260-265%. The broker highlights several areas of focus in the update. 

Jarden will be looking for evidence that ALS' Commodities segment can sustain higher costs through pricing power, as well as potential acquisitions for the Life Sciences segment, with the broker expecting a bolt-on food and environment acquisition could be likely. 

The Overweight rating and target rate of $13.80 are retained.

This report was published on May 19, 2022.

Target price is $13.80 Current Price is $12.17 Difference: $1.63
If ALQ meets the Jarden target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $13.77, suggesting upside of 12.1%(ex-dividends)
The company's fiscal year ends in March.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 33.00 cents and EPS of 54.10 cents.
At the last closing share price the estimated dividend yield is 2.71%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 53.0, implying annual growth of 48.1%.
Current consensus DPS estimate is 31.7, implying a prospective dividend yield of 2.6%.
Current consensus EPS estimate suggests the PER is 23.2.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 35.00 cents and EPS of 58.10 cents.
At the last closing share price the estimated dividend yield is 2.88%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.95.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 59.3, implying annual growth of 11.9%.
Current consensus DPS estimate is 34.8, implying a prospective dividend yield of 2.8%.
Current consensus EPS estimate suggests the PER is 20.7.

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

AML    AEON METALS LIMITED

Copper – Overnight Price: $0.04

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

Aeon Metals has finalised a $7.2m equity placement and plans to raise another $12.5m through a non-renounceable one-for-three entitlement offer at 4c a share to mainly fund its drilling program at Walford Creek to seek a larger resource.

Bell Potter says it is sensible for the company to focus on resource growth over the capital-expensive option of pressure oxidation, and that a resource at Walford Creek of up to 100MT (currently 44.4Mt) would double the broker's 12-year mine-life estimates and point to a world-class scale project highly leveraged to the copper and cobalt price.

Speculative Buy rating retained. Target price slips to 9c from 9.5c to reflect the resulting dilution (partly offset by rising commodity prices).

This report was published on May 20, 2022.

Target price is $0.09 Current Price is $0.04 Difference: $0.05
If AML meets the Bell Potter target it will return approximately 125% (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 0.00 cents.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of 0.00 cents.

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

APE    EAGERS AUTOMOTIVE LIMITED

Automobiles & Components – Overnight Price: $11.02

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

Following a first half trading update by Eagers Automotive, Jarden now expects lower new vehicle deliveries as a result of supply
pressures from ongoing chip shortages, the Russia/Ukraine conflict and the Chinese covid lockdowns.

Management guided to an interim underlying profit range of $183-189m compared to the $214.8m reported in the previous corresponding period. Nonetheless, the broker raises its 2H profit estimate by 14% to $201m. The target falls to $14.04 from $15.21. Overweight.

This report was published on May 19, 2022.

Target price is $14.04 Current Price is $11.02 Difference: $3.02
If APE meets the Jarden target it will return approximately 27% (excluding dividends, fees and charges).
Current consensus price target is $16.35, suggesting upside of 48.5%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY22:

Jarden forecasts a full year FY22 EPS of 105.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 103.4, implying annual growth of -17.4%.
Current consensus DPS estimate is 63.9, implying a prospective dividend yield of 5.8%.
Current consensus EPS estimate suggests the PER is 10.6.

Forecast for FY23:

Jarden forecasts a full year FY23 EPS of 90.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.19.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 97.9, implying annual growth of -5.3%.
Current consensus DPS estimate is 60.1, implying a prospective dividend yield of 5.5%.
Current consensus EPS estimate suggests the PER is 11.2.

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

ARG    ARGO INVESTMENTS LIMITED

Overnight Price: $9.36

Jarden rates ((ARG)) as Neutral (3) –

Following its latest full year result, Jarden has described Argo Investments as consistent, with property income, net distributable income and funds from operations all largely in line.

Looking forward, the broker notes completion and leasing of the 105 Carlton Gore development will be a key focus for the year ahead, with project completion targeted for May 2023, and while the broker assumes 101 Carlton Gore will commence following this it notes strong leasing enquiry could see the project brought forward.

Forecasts are largely unchanged, but higher interest rates impact on the broker's target price. The Neutral rating is retained and the target price decreases to NZ$1.30 from NZ$1.42.

This report was published on May 19, 2022.

Current Price is $9.36. Target price not assessed.

Forecast for FY23:

Jarden forecasts a full year FY23 EPS of 6.77 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 138.24.

Forecast for FY24:

Jarden forecasts a full year FY24 EPS of 7.05 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 132.71.

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: $18.10

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

Having previously opted for Sims ((SGM)) in the sector, Goldman Sachs now prefers BlueScope Steel (upgraded to Buy from Neutral) on a range of metrics and the upside potential to the broker's $25.30 target price, up from $21.40.

The broker also believes the company is undervalued versus US steel peers.

Earnings forecasts are raised after allowing for January-April actual steel prices and raw material inputs, as well as increased Goldman Sachs' price forecasts for US hot-rolled coil (HRC), metallurgical coal and scrap.

Citing three structural changes for global steel markets, the broker expects higher global ferrous scrap demand, lower Chinese steel exports, as well as heightened green capex and infrastructure spend.

This report was published on May 19, 2022.

Target price is $25.30 Current Price is $18.10 Difference: $7.2
If BSL meets the Goldman Sachs target it will return approximately 40% (excluding dividends, fees and charges).
Current consensus price target is $25.23, suggesting upside of 41.6%(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 521.00 cents.
At the last closing share price the estimated dividend yield is 3.59%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 3.47.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 529.1, implying annual growth of 123.3%.
Current consensus DPS estimate is 50.0, implying a prospective dividend yield of 2.8%.
Current consensus EPS estimate suggests the PER is 3.4.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 65.00 cents and EPS of 211.00 cents.
At the last closing share price the estimated dividend yield is 3.59%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.58.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 278.3, implying annual growth of -47.4%.
Current consensus DPS estimate is 50.0, implying a prospective dividend yield of 2.8%.
Current consensus EPS estimate suggests the PER is 6.4.

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

Elevated US steel pricing and spreads have benefited BlueScope Steel's North Star and North American coated business, driving an upgrade to the company's second half earnings range to $1.375-1.475bn, from a previous $1.20-1.35bn, and causing Jarden to lift its forecasts to $1.43bn.

With major US steel industry peers recently increasing hot rolled coil pricing to $1,445 per short tonne for 2022, Jarden is increasingly confident in its own steel pricing assumptions and earnings estimates, despite being 52% above consensus.

The broker further noted Australian steel product demand remains strong, with short-term supply issues likely impacting on dispatch volumes in the second half, but recovery is anticipated in the coming 6-12 months.

The Overweight rating and target price of $23.00 are retained. 

This report was published on May 19, 2022.

Target price is $23.00 Current Price is $18.10 Difference: $4.9
If BSL meets the Jarden target it will return approximately 27% (excluding dividends, fees and charges).
Current consensus price target is $25.23, suggesting upside of 41.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 50.00 cents and EPS of 509.70 cents.
At the last closing share price the estimated dividend yield is 2.76%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 3.55.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 529.1, implying annual growth of 123.3%.
Current consensus DPS estimate is 50.0, implying a prospective dividend yield of 2.8%.
Current consensus EPS estimate suggests the PER is 3.4.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 50.00 cents and EPS of 417.00 cents.
At the last closing share price the estimated dividend yield is 2.76%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.34.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 278.3, implying annual growth of -47.4%.
Current consensus DPS estimate is 50.0, implying a prospective dividend yield of 2.8%.
Current consensus EPS estimate suggests the PER is 6.4.

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

CHN    CHALICE MINING LIMITED

Industrial Metals – Overnight Price: $6.81

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

Chalice Mining has received final approvals to start exploration drilling at the Hartog-Dampier targets within its 100%-owned Julimar Nickel-Copper Platinum Group Element Project in Western Australia – a small footprint diamond-drill operation involving no mechanised clearing.

In all, 70 drill sites have been approved and Bell Potter considers this a major win for the company (which had previously been granted access to only eight of the 70) with clear impacts for the share price, and could repeat the Gonneville experience.

Speculative Buy rating and $12.02 target price retained.

This report was published on May 20, 2022.

Target price is $12.02 Current Price is $6.81 Difference: $5.21
If CHN meets the Bell Potter target it will return approximately 77% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

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

GDF    GARDA PROPERTY GROUP

REITs – Overnight Price: $1.50

Moelis rates ((GDF)) as Upgrade to Buy from Hold (1) –

Moelis lifts its rating for Garda Property to Buy from Hold and raises its target price to $2.10 from $1.84 driven by a recent valuation uplift, and progress with the development pipeline.

The group has received council approval for the development of its North Lakes industrial development site. Also, the valuation for the North Lakes property has risen to $45m from $20m, which is thought to provide capacity for funding other developments.

This report was published on May 23, 2022.

Target price is $2.10 Current Price is $1.50 Difference: $0.6
If GDF meets the Moelis target it will return approximately 40% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 7.20 cents and EPS of 8.00 cents.
At the last closing share price the estimated dividend yield is 4.80%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.75.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 7.60 cents and EPS of 8.50 cents.
At the last closing share price the estimated dividend yield is 5.07%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.65.

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

IDX    INTEGRAL DIAGNOSTICS LIMITED

Medical Equipment & Devices – Overnight Price: $3.92

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

Integral Diagnostics is set to acquire Auckland-based Horizon Radiology for $30.1m in early FY23, driving increases to Jarden's earnings forecasts of 2.3%, 1.8% and 2.2% through to FY25. 

Horizon's eight clinics rely mainly on general and specialist referrals, and Jarden notes while it offers a much lower earnings margin than the company's existing Auckland business it broadens referral channels and contributes to a more defensive business.

The broker highlights Integral Diagnostics remains one its key reopen picks, anticipating covid impacts on diagnostic imaging and margins will be transitory. The Overweight rating is retained and the target price increases to $4.80 from $4.70.

This report was published on May 19, 2022.

Target price is $4.80 Current Price is $3.92 Difference: $0.88
If IDX meets the Jarden target it will return approximately 22% (excluding dividends, fees and charges).
Current consensus price target is $4.46, suggesting upside of 13.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 8.00 cents and EPS of 13.30 cents.
At the last closing share price the estimated dividend yield is 2.04%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.47.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 14.0, implying annual growth of -10.1%.
Current consensus DPS estimate is 9.6, implying a prospective dividend yield of 2.4%.
Current consensus EPS estimate suggests the PER is 28.0.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 9.90 cents and EPS of 20.30 cents.
At the last closing share price the estimated dividend yield is 2.53%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.31.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 21.0, implying annual growth of 50.0%.
Current consensus DPS estimate is 13.8, implying a prospective dividend yield of 3.5%.
Current consensus EPS estimate suggests the PER is 18.7.

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

MBH    MAGGIE BEER HOLDINGS LIMITED

Overnight Price: $0.39

Taylor Collison rates ((MBH)) as Outperform & Accumulate (2) –

Taylor Collison reduces its target price to $0.63 from $0.65 and retains its Outperform & Accumulate rating following a guidance downgrade of -$4.2m to FY22 trading earnings (EBITDA) by Maggie Beer. It's noted revenue remains in-line with initial guidance.

The broker more attributes the downgrade to supply chain pressures and impacts from covid-19 rather than any indication of a significant hit to structured growth or loss of material market share.

This report was published on May 23, 2022.

Target price is $0.63 Current Price is $0.39 Difference: $0.24
If MBH meets the Taylor Collison target it will return approximately 62% (excluding dividends, fees and charges).

Forecast for FY20:

Forecast for FY21:

Taylor Collison forecasts a full year FY21 EPS of 0.53 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 73.58.

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

SEK    SEEK LIMITED

Jobs & Skilled Labour Services – Overnight Price: $25.10

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

After assessing a number of data points relevant to Seek, Goldman Sachs forecasts FY22 earnings (EBITDA) will increase by 57% to $521m, above management's guidance for $490-$515m.

Despite positivity for future earnings, the broker lowers its target price by -9% to $26.60 after a mark-to-market exercise taking into account peer multiples.

The Sell rating is retained ahead of a predicted slowdown in FY23 earnings. The analyst forecasts a greater slowdown than for peers REA Group ((REA)), Domain Holdings ((DHG)) and Carsales.com ((CAR)).

This report was published on May 17, 2022.

Target price is $26.60 Current Price is $25.10 Difference: $1.5
If SEK meets the Goldman Sachs target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $34.31, suggesting upside of 36.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 49.00 cents and EPS of 71.00 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 35.35.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 68.6, implying annual growth of 96.4%.
Current consensus DPS estimate is 44.2, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 36.5.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 49.00 cents and EPS of 72.00 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 34.86.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 74.8, implying annual growth of 9.0%.
Current consensus DPS estimate is 44.4, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 33.5.

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

SGM    SIMS LIMITED

Steel & Scrap – Overnight Price: $17.28

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

Due to a comparison of target prices to prevailing share prices, Goldman Sachs now prefers BlueScope Steel ((BSL)) in the sector and downgrades its rating for Sims to Neutral from Buy. The $21.40 target price is unchanged.

Nonetheless, the analyst stays positive on the company's near-term earnings momentum.

Citing three structural changes for global steel markets, the broker expects higher global ferrous scrap demand, lower Chinese steel exports, as well as heightened green capex and infrastructure spend.

This report was published on May 19, 2022.

Target price is $21.40 Current Price is $17.28 Difference: $4.12
If SGM meets the Goldman Sachs target it will return approximately 24% (excluding dividends, fees and charges).
Current consensus price target is $22.03, suggesting upside of 27.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 63.00 cents and EPS of 255.00 cents.
At the last closing share price the estimated dividend yield is 3.65%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.78.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 257.7, implying annual growth of 125.9%.
Current consensus DPS estimate is 76.8, implying a prospective dividend yield of 4.5%.
Current consensus EPS estimate suggests the PER is 6.7.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 55.00 cents and EPS of 192.00 cents.
At the last closing share price the estimated dividend yield is 3.18%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 190.5, implying annual growth of -26.1%.
Current consensus DPS estimate is 57.8, implying a prospective dividend yield of 3.4%.
Current consensus EPS estimate suggests the PER is 9.1.

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

SHV    SELECT HARVESTS LIMITED

Agriculture – Overnight Price: $5.99

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

Select Harvests has provided a crop and market update and has pre-released its FY22 profit (NPAT) result, which fell sharply shy of Bell Potter's forecasts.

Persistent rain has extended its impact on the harvest, but the company's crop harvest estimate remains slightly ahead of the broker.

Higher processing costs, combined with higher handling and dry the costs have had a significant impact on margins given the rain's first toll was on the lower-maintenance in-shell crop.

Bell Potter considers the processing imposts to be one-off in nature but expects costs will remain elevated given general rising input costs.

Buy rating retained, the broker noting the company is exposed to a favourable asset revaluation cycle and expects it has a chance to obtain more favourable pricing in future as Californian expansion slows.

Target price falls to $6.95 from $7.40 to reflect the weather and cost impacts.

This report was published on May 20, 2022.

Target price is $6.95 Current Price is $5.99 Difference: $0.96
If SHV meets the Bell Potter target it will return approximately 16% (excluding dividends, fees and charges).
The company's fiscal year ends in September.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 1.50 cents and EPS of 4.20 cents.
At the last closing share price the estimated dividend yield is 0.25%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 142.62.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 5.50 cents and EPS of 15.40 cents.
At the last closing share price the estimated dividend yield is 0.92%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 38.90.

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

SKO    SERKO LIMITED

Software & Services – Overnight Price: $3.66

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

Serko's full year result was largely in line with Jarden's expectations, reporting revenue of NZ$19.8m and a loss of -NZ$28.1m. The broker highlighted second half monthly cash burn of NZ$3 was below guidance, with a tight labour market constraining investment.

Revenue guidance of approximately double FY22, or around $40m, in the coming year is soft compared to market expectations according to Jarden, but the broker acknowledges the guidance allows a significant margin for error given covid recovery uncertainty.

Travel recovery continues, with Australian bookings in April at 83% of pre-covid levels and New Zealand bookings at 114%.

The Underweight rating is retained and the target price decreases to NZ$4.50 from NZ$4.75.

This report was published on May 19, 2022.

Current Price is $3.66. Target price not assessed.
Current consensus price target is $5.57, suggesting upside of 48.8%(ex-dividends)
The company's fiscal year ends in March.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 28.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 12.89.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -18.4, 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 N/A.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 20.31 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 18.02.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -11.8, 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.

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

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Disclaimer:
The content of this information does in no way reflect the opinions of FNArena, or of its journalists. In fact we don't have any opinion about the stock market, its value, future direction or individual shares. FNArena solely reports about what the main experts in the market note, believe and comment on. By doing so we believe we provide intelligent investors with a valuable tool that helps them in making up their own minds, reading market trends and getting a feel for what is happening beneath the surface. This document is provided for informational purposes only. It does not constitute an offer to sell or a solicitation to buy any security or other financial instrument. FNArena employs very experienced journalists who base their work on information believed to be reliable and accurate, though no guarantee is given that the daily report is accurate or complete. Investors should contact their personal adviser before making any investment decision.

As part of emerging new trends overseas, The Australian Broker Call *Extra* Edition also includes providers of sponsored research. Readers should bear in mind, sponsored research, while not necessarily of lower quality, has the embedded complication that the company that is the subject of the research has paid for this research. Providers of sponsored research that can potentially be included in this Report are Breakaway Research, Edison Investment Research, Independent Investment Research, NDF Research, Pitt Street Research, and TMT Analytics.

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