Australian Broker Call *Extra* Edition – May 26, 2022

This story features PENTANET LIMITED, and other companies. For more info SHARE ANALYSIS: 5GG

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)

5GG   AFP   ARX   AZY   BWX   BXB   CIP   COF   ELD (4)   GDF   GOZ   PMV   SCG   TNE   WOA   WPR  

5GG    PENTANET LIMITED

Telecommunication – Overnight Price: $0.27

Bell Potter rates ((5GG)) as Initiation of coverage with Buy (1) –

Bell Potter initiates coverage on Pentanet, an early stage NBN alternative and cloud gaming provider, as it undergoes significant growth investment. 

The broker notes Pentanet is not only investing in a 5G network, but also an Australian-first wireless gigabit mesh network, both with the aim of increasing capacity. While the 5G network will lift capacity to 83,500, the company estimates its mesh network could see capacity expand by a further 214,000.

The company has successfully grown subscribers at a 109.2% compound annual growth rate since its launch to more than 15,000, while the company's cloud gaming platform gained 12,000 users at its October launch.

The broker initiates with a Buy rating and a target price of $0.41.

This report was published on May 25, 2022.

Target price is $0.41 Current Price is $0.27 Difference: $0.14
If 5GG meets the Bell Potter target it will return approximately 52% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 1.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 14.21.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 2.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 11.74.

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

AFP    AFT PHARMACEUTICALS LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $3.00

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

AFT Pharmaceuticals FY22 full-year result beat Bell Potter's forecasts, as strong sales and royalties in Australia and New Zealand triumphed over cost inflation, yielding a slight margin gain.

The broker upgrades earnings forecasts for FY23 to account for $8m in extra licence fees and stronger than forecast revenue growth and eases forecasts in FY24.

Rating upgraded to Buy from Hold, the broker expecting the company will pay a maiden dividend in FY23 of  20% to 30% while keeping debt levels steady, thanks to solid earnings outlook. Target $4.80.

This report was published on May 24, 2022.

Target price is $4.80 Current Price is $3.00 Difference: $1.8
If AFP meets the Bell Potter target it will return approximately 60% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 22.75 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.19.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 4.51 cents and EPS of 20.03 cents.
At the last closing share price the estimated dividend yield is 1.50%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.98.

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

ARX    AROA BIOSURGERY LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $0.82

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

Aroa Biosurgery's reported full year results are largely in line with Bell Potter's expectations, with total revenue of NZ$39.7m, including a NZ$1.5m currency tailwind, a beat on the company's NZ$34-37m guidance.

The company is now guiding to revenue of NZ$51-55m in the coming year, reflecting 30-40% growth, although Bell Potter notes this is dependent on performance from TELA Bio. 

The Buy rating and target price of $1.45 are retained.

This report was published on May 25, 2022.

Target price is $1.45 Current Price is $0.82 Difference: $0.63
If ARX meets the Bell Potter target it will return approximately 77% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 3.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 26.45.

Forecast for FY24:

Bell Potter forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 0.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 117.14.

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

AZY    ANTIPA MINERALS LIMITED

Mining – Overnight Price: $0.04

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

A recent resource update for Antipa Minerals' Minyari Dome project offers sufficient scale for a development scenario to be feasible according to Shaw and Partners, with the new resource of 33m tonnes including 1.6 grams of gold per tonne, or 1.8m ounces. 

The broker expects the most likely development scenario is for the company to look to recover significant copper and cobalt alongside the golf resource. 

The Buy rating is retained and the target price increases to 8.2c from 8.0c.

This report was published on May 24, 2022.

Target price is $0.08 Current Price is $0.04 Difference: $0.042
If AZY meets the Shaw and Partners target it will return approximately 105% (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 4.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 0.83.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 5.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 0.74.

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

BWX    BWX LIMITED

Household & Personal Products – Overnight Price: $1.40

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

Shaw and Partners continues to expect BWX to re-rate from FY23 onwards, noting the company appears focused on removing unnecessary costs and non-core investment in the near-term, before focusing on its strong core brands, Sukin, Andalou, Mineral Fusion and Go-To, which should deliver strong earnings growth over the next few years.

The company's new Clayton facility, a feature of its recent Investor Strategy Day, is expected to support results, driving a cost per unit reduction to $2.00 from $5.00, de-risking the company's supply chain, and improving quality controls.

The Buy rating is retained and the target price decreases to $2.70 from $2.80.

This report was published on May 23, 2022.

Target price is $2.70 Current Price is $1.40 Difference: $1.3
If BWX meets the Shaw and Partners target it will return approximately 93% (excluding dividends, fees and charges).
Current consensus price target is $2.50, suggesting upside of 82.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 4.10 cents and EPS of 1.50 cents.
At the last closing share price the estimated dividend yield is 2.93%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 93.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.1, implying annual growth of -52.5%.
Current consensus DPS estimate is 2.2, implying a prospective dividend yield of 1.6%.
Current consensus EPS estimate suggests the PER is 16.9.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 1.40 cents and EPS of 11.00 cents.
At the last closing share price the estimated dividend yield is 1.00%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.73.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 11.9, implying annual growth of 46.9%.
Current consensus DPS estimate is 3.9, implying a prospective dividend yield of 2.8%.
Current consensus EPS estimate suggests the PER is 11.5.

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

BXB    BRAMBLES LIMITED

Transportation & Logistics – Overnight Price: $11.09

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

Jarden updates its US Pallets Cost Tracker to the end of April 22 to reveal a -5.5% fall in lumber pallet costs year-on-year.

While prices remain high overall, the data suggests cost inflation is slowing, and Jarden says spot pricing suggests a further -36% fall in lumber costs in May (from April). But it's not all sunshine and roses, given US freight and fuel costs remain high (up 14.1% year on year).

Meanwhile, US food and beverage retail inventories rose 8.6% in March, suggesting industry growth and a continued tightening in pallet supply, says Jarden.

Overweight rating and $11.50 target price are retained, the broker sitting just above consensus.

This report was published on May 23, 2022.

Target price is $11.50 Current Price is $11.09 Difference: $0.41
If BXB meets the Jarden target it will return approximately 4% (excluding dividends, fees and charges).
Current consensus price target is $11.99, suggesting upside of 8.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 37.71 cents and EPS of 54.38 cents.
At the last closing share price the estimated dividend yield is 3.40%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.39.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 59.5, implying annual growth of N/A.
Current consensus DPS estimate is 30.8, implying a prospective dividend yield of 2.8%.
Current consensus EPS estimate suggests the PER is 18.5.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 38.67 cents and EPS of 55.75 cents.
At the last closing share price the estimated dividend yield is 3.49%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.89.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 63.8, implying annual growth of 7.2%.
Current consensus DPS estimate is 33.2, implying a prospective dividend yield of 3.0%.
Current consensus EPS estimate suggests the PER is 17.3.

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

CIP    CENTURIA INDUSTRIAL REIT

REITs – Overnight Price: $3.40

Moelis rates ((CIP)) as Buy (1) –

Moelis undertakes a review of Australian REITs and says that while rising interest rates will dampen earnings, rising inflation should increase the attractiveness of many REITS as defensive investments, noting their strong balance sheets and attractive income growth profiles.  Earnings forecasts fall -2.4% and -4.2% across Moelis's portfolio coverage.

Centuria Industrial REIT is one such and the broker expects strong industrial rents should offset any material downside to cap rate expansion. Moelis expects a strong recovery in industrial rents post covid will continue for the foreseeable future, especially given tightening supply.

The broker notes the company is trading at a -18% discount to net tangible assets and believes it is oversold.

Buy rating retained. Target price eases to $3.97 from $4.12.

This report was published on May 25, 2022.

Target price is $3.97 Current Price is $3.40 Difference: $0.57
If CIP meets the Moelis target it will return approximately 17% (excluding dividends, fees and charges).
Current consensus price target is $4.17, suggesting upside of 22.6%(ex-dividends)

Forecast for FY22:

Current consensus EPS estimate is 18.1, implying annual growth of -84.6%.
Current consensus DPS estimate is 17.3, implying a prospective dividend yield of 5.1%.
Current consensus EPS estimate suggests the PER is 18.8.

Forecast for FY23:

Current consensus EPS estimate is 19.0, implying annual growth of 5.0%.
Current consensus DPS estimate is 17.8, implying a prospective dividend yield of 5.2%.
Current consensus EPS estimate suggests the PER is 17.9.

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

COF    CENTURIA OFFICE REIT

REITs – Overnight Price: $2.00

Moelis rates ((COF)) as Buy (1) –

Moelis undertakes a review of Australian REITs and says that while rising interest rates will dampen earnings, rising inflation should increase the attractiveness of many REITS as defensive investments, noting their strong balance sheets and attractive income growth profiles. Earnings forecasts fall -2.4% and -4.2% across Moelis's portfolio coverage.

Centuria Office REIT is one such REIT and Moelis notes its asset quality has driven consistent leasing in the face of tough covid conditions for offices.

The company is trading at a -19% discount to net tangible assets and with only 16% of income expiring in the next two years, Moelis believes the 8.2% dividend is sustainable.

Buy rating retained. Target price rises eases to $2.44 from $2.53.

This report was published on May 25, 2022.

Target price is $2.44 Current Price is $2.00 Difference: $0.44
If COF meets the Moelis target it will return approximately 22% (excluding dividends, fees and charges).
Current consensus price target is $2.41, suggesting upside of 20.3%(ex-dividends)

Forecast for FY22:

Current consensus EPS estimate is 18.8, implying annual growth of 26.3%.
Current consensus DPS estimate is 16.7, implying a prospective dividend yield of 8.4%.
Current consensus EPS estimate suggests the PER is 10.6.

Forecast for FY23:

Current consensus EPS estimate is 19.2, implying annual growth of 2.1%.
Current consensus DPS estimate is 16.9, implying a prospective dividend yield of 8.5%.
Current consensus EPS estimate suggests the PER is 10.4.

Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

ELD    ELDERS LIMITED

Agriculture – Overnight Price: $13.81

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

Elder's March first-half result beat Bell Potter's forecasts thanks to a strong performance in retail, backed by strength in the wholesale business. Management raises earnings (EBIT) guidance to 30%-40% from 20%-30%.

Net debt rose in the period and and acquisition costs hit $37.5m comprising $11.2m of deferred consideration and $26.3m of new investment, notes the broker.

Bell Potter considers upgraded guidance to be modest given tailwinds for ag-chem and fertiliser products and livestock turnover, but casts a cautious eye to peak seasonal conditions.

Hold rating retained, the broker doubting the backward integration and strong execution on acquisitions will outpace a seasonal downcycling. Target price rises to $15.50 from $13.90 to reflect the beat.

This report was published on May 24, 2022.

Target price is $15.50 Current Price is $13.81 Difference: $1.69
If ELD meets the Bell Potter target it will return approximately 12% (excluding dividends, fees and charges).
Current consensus price target is $15.10, suggesting upside of 13.3%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 56.00 cents and EPS of 104.40 cents.
At the last closing share price the estimated dividend yield is 4.06%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.23.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 93.5, implying annual growth of -2.4%.
Current consensus DPS estimate is 50.5, implying a prospective dividend yield of 3.8%.
Current consensus EPS estimate suggests the PER is 14.3.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 50.00 cents and EPS of 87.70 cents.
At the last closing share price the estimated dividend yield is 3.62%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.75.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 86.0, implying annual growth of -8.0%.
Current consensus DPS estimate is 47.6, implying a prospective dividend yield of 3.6%.
Current consensus EPS estimate suggests the PER is 15.5.

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

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

Elders' March first-half result beat Goldman Sachs' forecasts and the broker believes the company will post solid, sustainable earnings growth over the medium term.

Management revises guidance upward and Goldman Sachs spies an attractive valuation and room for a positive earnings surprise.

The broker believes investors are mispricing the potential of the company in the mistaken belief it has peaked from a seasonal perspective. But Goldman believes solid execution on the company's integration strategy should yield organic growth, margin expansion and market-share growth, not to mention likely acquisitions as the industry rationalises.

EPS forecasts rise 10%, 9% and 8%. Target price rises $21.00 from $18.40. Buy rating retained.

This report was published on May 23, 2022.

Target price is $21.00 Current Price is $13.81 Difference: $7.19
If ELD meets the Goldman Sachs target it will return approximately 52% (excluding dividends, fees and charges).
Current consensus price target is $15.10, suggesting upside of 13.3%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 50.00 cents and EPS of 102.00 cents.
At the last closing share price the estimated dividend yield is 3.62%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.54.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 93.5, implying annual growth of -2.4%.
Current consensus DPS estimate is 50.5, implying a prospective dividend yield of 3.8%.
Current consensus EPS estimate suggests the PER is 14.3.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 53.00 cents and EPS of 108.00 cents.
At the last closing share price the estimated dividend yield is 3.84%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.79.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 86.0, implying annual growth of -8.0%.
Current consensus DPS estimate is 47.6, implying a prospective dividend yield of 3.6%.
Current consensus EPS estimate suggests the PER is 15.5.

Market Sentiment: 0.5
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 ((ELD)) as Buy (1) –

Shaw and Partners has described a very strong first half financial result from Elders, with the company upgrading its full year guidance and now anticipating year-on-year earnings growth of 30-40% believing strong conditions will remain for another 18-24 months.

The company reported first half revenue of $1.515bn, the result a combination of business improvement and growth initiatives, as well as favourable sector conditions, according to Shaw. The broker anticipates a strong winter crop ahead, while northern hemisphere wheat demand looks likely to continue to benefit company earnings into FY23.

The Buy rating is retained and the target increases to $20.00 from $16.50.

This report was published on May 24, 2022.

Target price is $20.00 Current Price is $13.81 Difference: $6.19
If ELD meets the Shaw and Partners target it will return approximately 45% (excluding dividends, fees and charges).
Current consensus price target is $15.10, suggesting upside of 13.3%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 56.00 cents and EPS of 98.80 cents.
At the last closing share price the estimated dividend yield is 4.06%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.98.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 93.5, implying annual growth of -2.4%.
Current consensus DPS estimate is 50.5, implying a prospective dividend yield of 3.8%.
Current consensus EPS estimate suggests the PER is 14.3.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 56.00 cents and EPS of 104.10 cents.
At the last closing share price the estimated dividend yield is 4.06%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.27.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 86.0, implying annual growth of -8.0%.
Current consensus DPS estimate is 47.6, implying a prospective dividend yield of 3.6%.
Current consensus EPS estimate suggests the PER is 15.5.

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

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Wilsons rates ((ELD)) as Underweight (5) –

Elders' March first-half result outpaced Wilsons' forecasts by 23% and management upgraded earnings (EBIT) guidance to growth of 30% to 40% (20% to 30% previously), thanks to strong growth in Retail Products, as strong demand and price inflation on cropping inputs buoyed earnings.

Operating cash flow proved a miss as the company invested in inventory, and debtors and higher commodity prices dragged.

Wilsons expects buoyant seasonal conditions have peaked and will ease over FY23 and FY24, offsetting structural earning growth.

Target price rises to $11.01 from $10.55 to reflect the earnings beat and upgraded guidance. Underweight rating retained.

This report was published on May 24, 2022.

Target price is $11.01 Current Price is $13.81 Difference: minus $2.8 (current price is over target).
If ELD 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 $15.10, suggesting upside of 13.3%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 51.00 cents and EPS of 99.30 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 13.91.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 93.5, implying annual growth of -2.4%.
Current consensus DPS estimate is 50.5, implying a prospective dividend yield of 3.8%.
Current consensus EPS estimate suggests the PER is 14.3.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 47.00 cents and EPS of 101.80 cents.
At the last closing share price the estimated dividend yield is 3.40%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.57.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 86.0, implying annual growth of -8.0%.
Current consensus DPS estimate is 47.6, implying a prospective dividend yield of 3.6%.
Current consensus EPS estimate suggests the PER is 15.5.

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

GDF    GARDA PROPERTY GROUP

REITs – Overnight Price: $1.59

Moelis rates ((GDF)) as Buy (1) –

Moelis undertakes a review of Australian REITs and says that while rising interest rates will dampen earnings, rising inflation should increase the attractiveness of many REITS as defensive investments, noting their strong balance sheets and attractive income growth profiles. Earnings forecasts fall -2.4% and -4.2% across Moelis's portfolio coverage.

Garda Property is one such REIT and the broker expects industrial development will drive earnings given tight supply, and the broker awaits near-term positive catalysts on tenant pre-commitments at development sites.

A recent increase in valuation also cuts the REIT's gearing to 35.5%.

Buy rating retained. Target price is steady at $2.10.

This report was published on May 25, 2022.

Target price is $2.10 Current Price is $1.59 Difference: $0.51
If GDF meets the Moelis target it will return approximately 32% (excluding dividends, fees and charges).

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

GOZ    GROWTHPOINT PROPERTIES AUSTRALIA

Infra & Property Developers – Overnight Price: $3.85

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

Moelis undertakes a review of Australian REITs and says that while rising interest rates will dampen earnings, rising inflation should increase the attractiveness of many REITS as defensive investments, noting their strong balance sheets and attractive income growth profiles. Earnings forecasts fall -2.4% and -4.2% across Moelis's portfolio coverage.

Growthpoint Properties Australia is one such REIT and the broker believes it has been oversold given its strong balance sheet and defensive income profile (a 6.4 year weighted average lease expiry as at April 22).

Rating upgraded to Buy from Hold. Target price eases to $4.40 from $4.56.

This report was published on May 25, 2022.

Target price is $4.40 Current Price is $3.85 Difference: $0.55
If GOZ meets the Moelis target it will return approximately 14% (excluding dividends, fees and charges).
Current consensus price target is $4.43, suggesting upside of 14.8%(ex-dividends)

Forecast for FY22:

Current consensus EPS estimate is 24.9, implying annual growth of -65.3%.
Current consensus DPS estimate is 20.9, implying a prospective dividend yield of 5.4%.
Current consensus EPS estimate suggests the PER is 15.5.

Forecast for FY23:

Current consensus EPS estimate is 25.0, implying annual growth of 0.4%.
Current consensus DPS estimate is 21.7, implying a prospective dividend yield of 5.6%.
Current consensus EPS estimate suggests the PER is 15.4.

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

PMV    PREMIER INVESTMENTS LIMITED

Apparel & Footwear – Overnight Price: $21.81

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

Jarden asks whether US retailers could be the canary in the coalmine for Australian retailers, and the answer is "yes".

US retailers recently reported a sharp slump in profits, sparking a sell-off in Australian retail shares. Global retailers generally posted reasonable sales but suffered margin erosion as inflation came home to roost, and Jarden expects this will be echoed in Australia.

Jarden considers the fashion sector to be less exposed and says the performance of Premier Investments drives its above-consensus stance on margin for the company, expecting it will benefit from Smiggle's structurally lower store base and higher margin channel mix.

It is a similar story for Accent Group ((AX1)) and Universal Store Holdings ((UNI)).

Overweight rating at $22.70 target price retained.

This report was published on May 23, 2022.

Target price is $22.70 Current Price is $21.81 Difference: $0.89
If PMV meets the Jarden target it will return approximately 4% (excluding dividends, fees and charges).
Current consensus price target is $30.88, suggesting upside of 41.0%(ex-dividends)
The company's fiscal year ends in July.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 80.00 cents and EPS of 153.00 cents.
At the last closing share price the estimated dividend yield is 3.67%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.25.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 154.2, implying annual growth of -9.9%.
Current consensus DPS estimate is 102.0, implying a prospective dividend yield of 4.7%.
Current consensus EPS estimate suggests the PER is 14.2.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 84.00 cents and EPS of 159.00 cents.
At the last closing share price the estimated dividend yield is 3.85%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.72.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 149.3, implying annual growth of -3.2%.
Current consensus DPS estimate is 114.2, implying a prospective dividend yield of 5.2%.
Current consensus EPS estimate suggests the PER is 14.7.

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

SCG    SCENTRE GROUP

REITs – Overnight Price: $2.87

Jarden rates ((SCG)) as Buy (1) –

Jarden asks whether US retailers could be the canary in the coalmine for Australian retailers, and the answer is "yes".

US retailers recently reported a sharp slump in profits, sparking a sell-off in Australian retail shares. Global retailers generally posted reasonable sales but suffered margin erosion as inflation came home to roost, and Jarden expects this will be echoed in Australia.

Jarden believes that while Mall REITs should eventually suffer from profitability pressures on tenants, Scentre Group and Vicinity Centres ((VCX)) are in the early stages of covid rent recovery and the broker expects the pair will experience top-line growth and rental growth. 

Jarden notes both stocks are trading at sharp discounts to book value.

Buy and $3.95 target retained for Scentre Group.

This report was published on May 23, 2022.

Target price is $3.95 Current Price is $2.87 Difference: $1.08
If SCG meets the Jarden target it will return approximately 38% (excluding dividends, fees and charges).
Current consensus price target is $3.04, suggesting upside of 5.9%(ex-dividends)

Forecast for FY22:

Current consensus EPS estimate is 19.5, implying annual growth of 13.8%.
Current consensus DPS estimate is 15.0, implying a prospective dividend yield of 5.2%.
Current consensus EPS estimate suggests the PER is 14.7.

Forecast for FY23:

Current consensus EPS estimate is 21.0, implying annual growth of 7.7%.
Current consensus DPS estimate is 16.0, implying a prospective dividend yield of 5.6%.
Current consensus EPS estimate suggests the PER is 13.7.

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

TNE    TECHNOLOGY ONE LIMITED

IT & Support – Overnight Price: $10.11

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

TechnologyOne's first half profit before tax was up 14%, totaling $42.6m, with a highlight of the result for Bell Potter the stronger than expected software as a service annual recurring revenue growth.

The software as a service segment achieved 44% annual recurring revenue growth in the half, and the company expects growth for the full year to exceed 40%. TechnologyOne also reiterated its longer-term annual recurring revenue target of more than $500m by FY26.

The But rating is retained and the target price increases to $12.75 from $12.50.

This report was published on May 25, 2022.

Target price is $12.75 Current Price is $10.11 Difference: $2.64
If TNE meets the Bell Potter target it will return approximately 26% (excluding dividends, fees and charges).
Current consensus price target is $11.28, suggesting upside of 10.5%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 15.30 cents and EPS of 26.40 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 38.30.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 26.6, implying annual growth of 17.5%.
Current consensus DPS estimate is 16.2, implying a prospective dividend yield of 1.6%.
Current consensus EPS estimate suggests the PER is 38.4.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 17.60 cents and EPS of 30.70 cents.
At the last closing share price the estimated dividend yield is 1.74%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 32.93.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 29.5, implying annual growth of 10.9%.
Current consensus DPS estimate is 18.6, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 34.6.

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

WOA    WIDE OPEN AGRICULTURE LIMITED

Food, Beverages & Tobacco – Overnight Price: $0.70

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

Wide Open Agriculture has secured a first supply agreement for its lupin protein concentrate, with Monde Nissin Australia agreeing to purchase up to 60% of the pilot production of the next years. Canaccord Genuity notes first delivery in expected in June. 

The broker highlights further demand could support Wide Open Agriculture in progressing plans for a commercial scale facility, and see the company continue to deliver on self-set strategic milestones.

Speculative Buy rating and target price of $1.21 are retained.

This report was published on May 24, 2022.

Target price is $1.21 Current Price is $0.70 Difference: $0.51
If WOA meets the Canaccord Genuity target it will return approximately 73% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 7.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 10.00.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 8.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 8.75.

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

WPR    WAYPOINT REIT LIMITED

REITs – Overnight Price: $2.47

Moelis rates ((WPR)) as Buy (1) –

Moelis undertakes a review of Australian REITs and says that while rising interest rates will dampen earnings, rising inflation should increase the attractiveness of many REITS as defensive investments, noting their strong balance sheets and attractive income growth profiles. Earnings forecasts fall -2.4% and -4.2% across Moelis's portfolio coverage.

Waypoint REIT is one such REIT and Moelis expects its portfolio will continue to improve as the company disposes of 13% of assets and returns the proceeds to shareholders.

Moelis notes the company is trading at a -17% discount to net tangible assets and expects this will magnify the payout benefit and makes Waypoint one of the cheapest long-WALE (weighted average lease expiry) REITs on the ASX.

Buy rating retained. Target price slips to $3.02 from $3.06.

This report was published on May 25, 2022.

Target price is $3.02 Current Price is $2.47 Difference: $0.55
If WPR meets the Moelis target it will return approximately 22% (excluding dividends, fees and charges).
Current consensus price target is $2.92, suggesting upside of 18.8%(ex-dividends)

Forecast for FY22:

Current consensus EPS estimate is 16.1, implying annual growth of -71.8%.
Current consensus DPS estimate is 16.7, implying a prospective dividend yield of 6.8%.
Current consensus EPS estimate suggests the PER is 15.3.

Forecast for FY23:

Current consensus EPS estimate is 16.7, implying annual growth of 3.7%.
Current consensus DPS estimate is 16.9, implying a prospective dividend yield of 6.9%.
Current consensus EPS estimate suggests the PER is 14.7.

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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