Australian Broker Call *Extra* Edition – Jun 03, 2022

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

An additional news report on the recommendation, valuation, forecast and opinion changes for ASX-listed equities.

In addition to The Australian Broker Call Report, which is published and updated daily (Mon-Fri), FNArena has now added The Australian Broker Call *Extra* Edition, featuring additional sources of research and insights on ASX-listed stocks, also enlarging the number of stocks that make up the FNArena universe.

One key difference is the *Extra* Edition will not be updated daily, but merely "regularly" depending on availability of suitable quality content. As such, the *Extra* Edition tries to build a bridge between daily updates via the Australian Broker Call Report and ad hoc news stories, that are not always timely for investors hungry for the next information update.

Investors using the *Extra* Edition as a source of input for their own share market research should thus take into account that information after publication may not be up to date, or yet awaiting another update by FNArena's team of journalists.

Similar to The Australian Broker Call Report, this *Extra* Edition includes concise but limited reviews of research recently published by Stockbrokers and other experts, which should be considered as information concerning likely market behaviour rather than advice on the securities mentioned. Do not act on the contents of this Report without first reading the important information included at the end of this Report.

The Australian Broker Call *Extra* Edition is a summary that has been prepared independently of the sources identified. Readers will check the full text of the recommendations and consult a Licenced Advisor before making any investment decision.

The copyright of this Report is owned by the publisher. Readers will not copy, forward or disseminate this Report to any other person. For more vital information about the sources included, see the bottom of this Report.

COMPANIES DISCUSSED IN THIS ISSUE

Click on a symbol for fast access.
The number next to the symbol represents the number of brokers covering it for this report -(if more than 1)

ABB   APZ   BOE   BSX   CLW   COB   CQR   EDV   ERD (2)   JRV   OKU   PAN   PBP   SLC   SRL   WPR  

ABB    AUSSIE BROADBAND LIMITED

Telecommunication – Overnight Price: $4.05

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

JP Morgan estimates the current share price for Aussie Broadband implies the market only sees 8% market share by FY27, compared to the broker's 11% forecast. It's believed the share price fall after the recent quarterly trading update was overdone.

As the company has a higher market share in the high-speed tier, the analyst believes the attempts by the NBN to shift customers to higher-speed tier plans will be beneficial.

In addition, its clear to the broker that NBN wholesale prices are going to increase (in the absence of government intervention), following the release of the latest NBN Wholesale Market Indicators report.

The Overweight rating is maintained, while the target price falls to $6.55 from $6.80.

This report was published on June 1, 2022.

Target price is $6.55 Current Price is $4.05 Difference: $2.5
If ABB meets the JP Morgan target it will return approximately 62% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

JP Morgan forecasts a full year FY22 dividend of 0.00 cents and EPS of 7.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 57.86.

Forecast for FY23:

JP Morgan forecasts a full year FY23 dividend of 0.00 cents and EPS of 16.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.31.

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

APZ    ASPEN GROUP LIMITED

Real Estate – Overnight Price: $1.57

Moelis rates ((APZ)) as Buy (1) –

Aspen Group has announced its acquisition of the Marina Hindmarsh Island Fund for a purchase price of $25m. Moelis notes the Fund owns the planned Coorong Quays community, comprised of 3,000 approved sites across 300 hectares.

The broker highlights the Coorong Quays acquisition looks to provide $2m in development profits annually, and operating income from the asset should increase over time. 

The company also noted 300 Perth apartments are expected to be leased by end of June, driving an expected 6% yield on cost from the Perth portfolio. 

The Buy rating is retained and the target price increases to $2.09 from $2.03.

This report was published on May 30, 2022.

Target price is $2.09 Current Price is $1.57 Difference: $0.52
If APZ meets the Moelis target it will return approximately 33% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 6.60 cents and EPS of 9.00 cents.
At the last closing share price the estimated dividend yield is 4.20%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.44.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 7.30 cents and EPS of 10.30 cents.
At the last closing share price the estimated dividend yield is 4.65%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.24.

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

BOE    BOSS ENERGY LIMITED

Uranium – Overnight Price: $2.16

Canaccord Genuity rates ((BOE)) as Speculative Buy (1) –

Boss Energy's Honeymoon project looks to be one of the first uranium mine restarts globally to receive a positive final investment decision, and while spot pricing has declined from ten-year highs above US$60 per pound, Canaccord Genuity expects market strengthening to continue over the medium-term.

Based on the broker's US$75 per pound long-term forecast, Canaccord Genuity expects the project to generate $180m earnings annually, noting the project retains an 18-month lead time to first production. 

The Speculative Buy rating is retained and the target price increases to $3.20 from $2.88.

This report was published on May 26, 2022.

Target price is $3.20 Current Price is $2.16 Difference: $1.04
If BOE meets the Canaccord Genuity target it will return approximately 48% (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 1.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 113.68.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of 0.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 1080.00.

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

BSX    BLACKSTONE MINERALS LIMITED

New Battery Elements – Overnight Price: $0.27

Canaccord Genuity rates ((BSX)) as Speculative Buy (1) –

Canaccord Genuity forecasts an acceleration in European and US sales will result in a larger than previously expected cobalt deficit in the mid-2020’s.

The broker believes this outcome will likely increase prices and result in a global search for cobalt units from original equipment manufacturers.

Nonetheless, the analyst cuts the price target for Blackstone Minerals by -24% to $0.80 after a risk adjustment, and updating for the recent definitive feasibility study update and capital raising. The Speculative Buy rating is unchanged.

This report was published on May 30, 2022.

Target price is $0.80 Current Price is $0.27 Difference: $0.53
If BSX meets the Canaccord Genuity target it will return approximately 196% (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 0.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 90.00.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 0.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 45.00.

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

CLW    CHARTER HALL LONG WALE REIT

REITs – Overnight Price: $4.91

JP Morgan rates ((CLW)) as Neutral (3) –

JP Morgan sees emerging value in the REIT sector due to a stabilisation of long-term bond yields and moderating market cash rate assumptions over the past few weeks.

Nonetheless, the broker reduces its target price for Charter Hall Long WALE REIT to 4.90 from $5.20. It's felt the REIT has limited lease expiry risk until FY24. The Neutral rating is maintained.

This report was published on May 27, 2022.

Target price is $4.90 Current Price is $4.91 Difference: minus $0.01 (current price is over target).
If CLW meets the JP Morgan target it will return approximately minus 0% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $5.56, suggesting upside of 13.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

JP Morgan forecasts a full year FY22 dividend of 30.00 cents and EPS of 30.00 cents.
At the last closing share price the estimated dividend yield is 6.11%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.37.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 30.9, implying annual growth of -72.8%.
Current consensus DPS estimate is 30.5, implying a prospective dividend yield of 6.2%.
Current consensus EPS estimate suggests the PER is 15.9.

Forecast for FY23:

JP Morgan forecasts a full year FY23 dividend of 29.00 cents and EPS of 29.00 cents.
At the last closing share price the estimated dividend yield is 5.91%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.93.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 30.9, implying annual growth of N/A.
Current consensus DPS estimate is 30.6, implying a prospective dividend yield of 6.2%.
Current consensus EPS estimate suggests the PER is 15.9.

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

COB    COBALT BLUE HOLDINGS LIMITED

Industrial Metals – Overnight Price: $0.79

Canaccord Genuity rates ((COB)) as Speculative Buy (1) –

Canaccord Genuity forecasts an acceleration in European and US sales will result in a larger than previously expected cobalt deficit in the mid-2020’s.

The broker believes this outcome will likely increase prices and result in a global search for cobalt units from original equipment manufacturers. The target price for Cobalt Blue rises by 69% to $1.10 on higher pricing and overall derisking.

The de-risking occurs as the company plans to commission its demonstration plant mid-2022, explains the broker, and recently began operations to access underground ore for the trial. The Speculative Buy rating is unchanged.

This report was published on May 30, 2022.

Target price is $1.10 Current Price is $0.79 Difference: $0.31
If COB meets the Canaccord Genuity target it will return approximately 39% (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 2.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 39.50.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 2.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 39.50.

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

CQR    CHARTER HALL RETAIL REIT

REITs – Overnight Price: $4.25

JP Morgan rates ((CQR)) as Neutral (3) –

JP Morgan sees emerging value in the REIT sector due to a stabilisation of long-term bond yields and moderating market cash rate assumptions over the past few weeks.

The broker raises its target price for Charter Hall Retail REIT to $4.40 from $4.30. The Neutral rating is retained as the recent strong performance of the non discretionary retail asset class is considered to be already priced-in.

This report was published on May 27, 2022.

Target price is $4.40 Current Price is $4.25 Difference: $0.15
If CQR meets the JP Morgan target it will return approximately 4% (excluding dividends, fees and charges).
Current consensus price target is $4.32, suggesting upside of 1.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

JP Morgan forecasts a full year FY22 dividend of 25.00 cents and EPS of 29.00 cents.
At the last closing share price the estimated dividend yield is 5.88%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.66.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 28.6, implying annual growth of -43.8%.
Current consensus DPS estimate is 24.7, implying a prospective dividend yield of 5.8%.
Current consensus EPS estimate suggests the PER is 14.9.

Forecast for FY23:

JP Morgan forecasts a full year FY23 dividend of 25.00 cents and EPS of 29.00 cents.
At the last closing share price the estimated dividend yield is 5.88%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.66.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 28.6, implying annual growth of N/A.
Current consensus DPS estimate is 25.0, implying a prospective dividend yield of 5.9%.
Current consensus EPS estimate suggests the PER is 14.9.

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

EDV    ENDEAVOUR GROUP LIMITED

Food, Beverages & Tobacco – Overnight Price: $7.20

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

Jarden retains its Underweight rating and $6.80 target price for Endeavour Group after a strategy day. While the growth outlook is positive, it's felt this may cost more than the market was expecting.

Despite good execution and a sound strategy, the broker retains an Underweight rating and prefers Treasury Wine Estates ((TWE)) in the space. It's thought numerous growth opportunities are already factored into the group's share price. 

This report was published on May 27, 2022.

Target price is $6.80 Current Price is $7.20 Difference: minus $0.4 (current price is over target).
If EDV meets the Jarden target it will return approximately minus 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $7.46, suggesting upside of 3.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 19.50 cents and EPS of 27.20 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 26.47.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 27.8, implying annual growth of 11.9%.
Current consensus DPS estimate is 20.9, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 25.9.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 22.00 cents and EPS of 29.70 cents.
At the last closing share price the estimated dividend yield is 3.06%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.24.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 30.9, implying annual growth of 11.2%.
Current consensus DPS estimate is 21.7, implying a prospective dividend yield of 3.0%.
Current consensus EPS estimate suggests the PER is 23.3.

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

ERD    EROAD LIMITED

Transportation & Logistics – Overnight Price: $2.02

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

Eroad'sFY22 results were modestly below consensus estimates and Canaccord Genuity's forecasts. The key catalyst to growth toward management's internal targets is thought to be the large enterprise pipeline in North America.

Management provided a FY25 organic revenue target of $250m (FY23 $160m) which was 20% higher than prior consensus expectations, according to the analyst. Nonetheless, a large step-up in opex is highlighted, which reduces the FY23 earnings forecast.

While the company's $250m FY25 revenue target indicates a step-change in the current revenue growth trajectory, the broker feels the market will await some evidence of execution before adjusting consensus forecasts.

The Buy rating is unchanged, while the target price falls to NZ$4.00 from NZ$6.50 to reflects increased opex forecasts for FY23 and FY24.

This report was published on May 27, 2022.

Current Price is $2.02. Target price not assessed.
The company's fiscal year ends in March.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 4.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 43.87.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of 3.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 63.22.

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

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Jarden rates ((ERD)) as Downgrade to Neutral from Overweight (3) –

Eroad's FY22 results were below Jarden's expectations due to higher-than-expected overhead costs and a soft performance in North America. Management's FY23 guidance was well below the analyst's estimates and consensus forecasts due to a higher cost base.

The broker lowers is rating to Neutral from Overweight and the target price falls to NZ$3.00 from NZ$3.70 due to lower earnings guidance. Higher risk-free rate assumptions are also utilised in forecasts, consistent with Jarden's New Zealand coverage.

Further wage inflation and elevated product investment (to improve the company's market fit and enterprise capabilities) were behind the higher cost structure estimate, explains the analyst.

This report was published on May 27, 2022.

Current Price is $2.02. Target price not assessed.
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 3.48 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 58.11.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 0.00 cents and EPS of 2.91 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 69.37.

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

JRV    JERVOIS GLOBAL LIMITED

New Battery Elements – Overnight Price: $0.76

Canaccord Genuity rates ((JRV)) as Upgrade to Buy from Speculative Buy (1) –

Canaccord Genuity forecasts an acceleration in European and US sales will result in a larger cobalt deficit in the mid-2020’s than previously expected.

The broker believes this outcome will likely increase prices and result in a global search for cobalt units from original equipment manufacturers. 

The analyst raises its rating for Jervois Global to Buy from Speculative Buy on consistent earnings and lifts the target price to $1.10 from $1.00 on a higher cobalt price forecast.

This report was published on May 30, 2022.

Target price is $1.00 Current Price is $0.76 Difference: $0.24
If JRV meets the Canaccord Genuity target it will return approximately 32% (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 2.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 38.00.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of 2.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 38.00.

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

OKU    OKLO RESOURCES LIMITED

Gold & Silver – Overnight Price: $0.14

Canaccord Genuity rates ((OKU)) as Speculative Buy (1) –

Canadian-based B2gold will acquire 100% of the shares in Oklo Resources by way of a Scheme of Arrangement. An implied value of 
$0.1725/share will comprise 0.0206 B2gold shares/Oklo Resources share, and $0.05252 cash/Oklo Resources share.

Canaccord Genuity feels the offer represents a good outcome for shareholders due to ongoing capital requirements and study/permitting/development risks.

The broker retains its Speculative Buy rating and lowers its target price to $0.17 from $0.35.

This report was published on May 27, 2022.

Target price is $0.17 Current Price is $0.14 Difference: $0.03
If OKU meets the Canaccord Genuity target it will return approximately 21% (excluding dividends, fees and charges).

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

PAN    PANORAMIC RESOURCES LIMITED

Nickel – Overnight Price: $0.27

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

Canaccord Genuity forecasts an acceleration in European and US sales will result in a larger than previously expected cobalt deficit in the mid-2020’s.

The broker believes this outcome will likely increase prices and result in a global search for cobalt units from original equipment manufacturers. 

The analyst upgrades its rating for Panoramic Resources to Buy from Hold on valuation. The target price rises to $0.36 from $0.35 on the expectation for higher nickel and cobalt pricing, just as the Savannah operation in WA is being ramped-up.

This report was published on May 30, 2022.

Target price is $0.36 Current Price is $0.27 Difference: $0.09
If PAN meets the Canaccord Genuity target it will return approximately 33% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 EPS of 0.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 90.00.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 EPS of 3.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.50.

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

PBP    PROBIOTEC LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $2.30

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

In light of the return of the domestic cold & flu/pharmacy market (on-track for the largest cold & flu season since 2017), Shaw and Partners flags Probiotec as a key Buy recommendation. Additionally, pharmacy attendances have been boosted by covid cases.

The company is one of the leading over-the-counter (OTC) pharma manufacturers in Australia, and the broker estimates upside for cold & flu earnings in the 2H and into FY23.

The analyst sees multiple opportunities for earnings margin upside, including operating leverage at the purpose built facilities in Laverton. Over $4m in synergies over time are also estimated from the consolidation of various assets in NSW.

The Buy rating is maintained and a $3.04 target price is set.

This report was published on May 27, 2022.

Target price is $3.04 Current Price is $2.30 Difference: $0.74
If PBP meets the Shaw and Partners target it will return approximately 32% (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 6.20 cents and EPS of 16.60 cents.
At the last closing share price the estimated dividend yield is 2.70%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.86.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 7.10 cents and EPS of 19.20 cents.
At the last closing share price the estimated dividend yield is 3.09%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.98.

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

SLC    SUPERLOOP LIMITED

Telecommunication – Overnight Price: $0.82

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

Superloop has announced its acquisition of Acurus Holdings for an initial price of $15m but with a further $20m available to Acurus Holdings in earn-outs, with Canaccord Genuity noting the purchase expands Superloop's capacity to secure non-traditional telcos as customers.

The broker expects the acquisition to be earnings accretive in FY23, assuming an earnings contribution of around $1m. The company also released an update demonstrating continuing subscriber growth and improved cash conversion.

The Buy rating and target price of $1.36 are retained.

This report was published on May 25, 2022.

Target price is $1.36 Current Price is $0.82 Difference: $0.54
If SLC meets the Canaccord Genuity target it will return approximately 66% (excluding dividends, fees and charges).
Current consensus price target is $1.26, suggesting upside of 53.3%(ex-dividends)
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 2.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 41.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -2.3, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of 2.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 41.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -0.4, 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.

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

SRL    SUNRISE ENERGY METALS LIMITED

New Battery Elements – Overnight Price: $3.00

Canaccord Genuity rates ((SRL)) as Speculative Buy (1) –

Canaccord Genuity forecasts an acceleration in European and US sales will result in a larger than previously expected cobalt deficit in the mid-2020’s.

The broker believes this outcome will likely increase prices and result in a global search for cobalt units from original equipment manufacturers. 

The analyst increases its target price for Sunrise Energy by 75% to $5.25 on higher pricing and general de-risking.

Canaccord Genuity feels a recent $400m debt package offered by Export Finance Australia (under the critical minerals strategy) indicates a financing solution will ultimately be delivered. The Speculative Buy rating is unchanged.

This report was published on May 30, 2022.

Target price is $5.25 Current Price is $3.00 Difference: $2.25
If SRL meets the Canaccord Genuity target it will return approximately 75% (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 9.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 33.33.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 9.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 33.33.

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

WPR    WAYPOINT REIT LIMITED

REITs – Overnight Price: $2.50

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

JP Morgan sees emerging value in the REIT sector due to a stabilisation of long-term bond yields and moderating market cash rate assumptions over the past few weeks.

Nonetheless, the broker reduces its target price for Waypoint REIT to $3.00 from $3.10. Management is guiding to $100m in further capital management in FY22. The Overweight rating is retained.

This report was published on May 27, 2022.

Target price is $3.00 Current Price is $2.50 Difference: $0.5
If WPR meets the JP Morgan target it will return approximately 20% (excluding dividends, fees and charges).
Current consensus price target is $2.92, suggesting upside of 16.9%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY22:

JP Morgan forecasts a full year FY22 dividend of 17.00 cents and EPS of 17.00 cents.
At the last closing share price the estimated dividend yield is 6.80%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.71.

How do these forecasts compare to market consensus projections?

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 6.7%.
Current consensus EPS estimate suggests the PER is 15.5.

Forecast for FY23:

JP Morgan forecasts a full year FY23 dividend of 17.00 cents and EPS of 17.00 cents.
At the last closing share price the estimated dividend yield is 6.80%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.71.

How do these forecasts compare to market consensus projections?

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 6.8%.
Current consensus EPS estimate suggests the PER is 15.0.

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

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Disclaimer:
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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.

Decisions about inclusions in this Report are made independently of the providers of stock market research and at full discretion of the team of journalists responsible for content at FNArena. Inclusion does not equal endorsement, in any way, shape or form. This Report is provided for informational purposes only.

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