Australian Broker Call *Extra* Edition – Jun 07, 2022

This story features AUSTRALIAN UNITY OFFICE FUND, and other companies. For more info SHARE ANALYSIS: AOF

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)

AOF   BHP   CAI   COE   DEG   JHX   JLG   LGP   MSB   NXS   PEB   PME (2)   REA   TGR   WES  

AOF    AUSTRALIAN UNITY OFFICE FUND

REITs – Overnight Price: $2.42

Moelis rates ((AOF)) as Hold (3) –

Australian Unity Office Fund has received an indicative proposal from Aliro Group to acquire outstanding units for $2.45 each, cash. The largest shareholder, Hume Partners, has supported the proposal.

In the event of a firm offer, investors would be given the option to realise a valuation relatively close to the current net tangible assets or hold shares in the stock while the portfolio is re-positioned.

Moelis believes a substantial outlay will be required in order to reposition several buildings in the portfolio to a point where they can become competitive. Hold rating and $2.34 target maintained.

This report was published on May 30, 2022.

Target price is $2.34 Current Price is $2.42 Difference: minus $0.08 (current price is over target).
If AOF meets the Moelis target it will return approximately minus 3% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 15.20 cents and EPS of 18.40 cents.
At the last closing share price the estimated dividend yield is 6.28%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.15.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 10.10 cents and EPS of 12.30 cents.
At the last closing share price the estimated dividend yield is 4.17%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.67.

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

BHP    BHP GROUP LIMITED

Bulks – Overnight Price: $46.34

Goldman Sachs rates ((BHP)) as Resume Coverage with Buy (1) –

Goldman Sachs resumes coverage with a Buy rating, noting an attractive valuation and cash flow remain post the completed oil de-merger.

The broker believes the premium versus peers can be maintained because of superior margins and operating performance, particularly in Pilbara iron ore as well as high-returning copper growth. Target is $51.20.

This report was published on June 2, 2022.

Target price is $51.20 Current Price is $46.34 Difference: $4.86
If BHP meets the Goldman Sachs target it will return approximately 10% (excluding dividends, fees and charges).
Current consensus price target is $47.79, suggesting upside of 2.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 483.43 cents and EPS of 647.77 cents.
At the last closing share price the estimated dividend yield is 10.43%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.15.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 623.7, implying annual growth of N/A.
Current consensus DPS estimate is 581.5, implying a prospective dividend yield of 12.5%.
Current consensus EPS estimate suggests the PER is 7.5.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 388.94 cents and EPS of 534.10 cents.
At the last closing share price the estimated dividend yield is 8.39%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.68.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 539.7, implying annual growth of -13.5%.
Current consensus DPS estimate is 428.2, implying a prospective dividend yield of 9.2%.
Current consensus EPS estimate suggests the PER is 8.6.

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

CAI    CALIDUS RESOURCES LIMITED

Gold & Silver – Overnight Price: $0.83

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

Calidus Resources has recently completed the commissioning of the Warrawoona processing plant and poured first gold from the CIL circuit.

Canaccord Genuity reports the focus has turned to exploration with drilling at Blue Spec East highlighting the potential for an open pit. The company expects Warrawoona will produce 80,000 ounces per annum over an eight-year mine life for an AISC (all-in costs) of $1292/oz.

Canaccord Genuity maintains a Speculative Buy rating and target of $1.20.

This report was published on June 2, 2022.

Target price is $1.20 Current Price is $0.83 Difference: $0.37
If CAI meets the Canaccord Genuity target it will return approximately 45% (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 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 83.00.

Forecast for FY23:

Canaccord Genuity 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 5.19.

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

COE    COOPER ENERGY LIMITED

Crude Oil – Overnight Price: $0.29

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

The Australian energy market regulator has now intervened in the Victorian, Queensland and NSW markets to cap prices. Canaccord Genuity assesses Cooper Energy, via improved production from the Orbost gas plant on top of growth projects in the Otway Basin, is one of the best ways to play the theme.

Growth in the Otway is expected to be fast tracked, given the tight gas market. With Bass Strait production in decline, LNG exports increasing and project delays, the broker expects Victoria's pricing will be in the $10/gigajoule range. Buy rating maintained. Target rises to $0.52 from $0.46.

This report was published on June 2, 2022.

Target price is $0.52 Current Price is $0.29 Difference: $0.23
If COE meets the Canaccord Genuity target it will return approximately 79% (excluding dividends, fees and charges).
Current consensus price target is $0.29, suggesting downside of -2.7%(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 0.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 290.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -11.0, 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 1.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.06.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 10.8, 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 2.8.

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

DEG    DE GREY MINING LIMITED

Gold & Silver – Overnight Price: $1.06

Bell Potter rates ((DEG)) as Speculative Buy (1) –

The updated mineral resource for the Mallina gold project shows an increase of 19% to 251mt at 1.3g/t gold for 10.6m ounces. All growth has occurred at the Hemi deposit.

Bell Potter assesses the latest update is "excellent" as it positions the project as the largest undeveloped gold resource in Australia and one of significance on a global scale. The broker retains a Speculative Buy rating with the target raised to $1.80 from $1.72.

This report was published on May 31, 2022.

Target price is $1.80 Current Price is $1.06 Difference: $0.74
If DEG meets the Bell Potter target it will return approximately 70% (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

JHX    JAMES HARDIE INDUSTRIES PLC

Building Products & Services – Overnight Price: $33.86

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

Jarden reassesses the outlook given the correction in the share price. The potential revenue opportunity in the US northeast is anticipated to be US$374-385m in the coming 1-2 years. Fibre cement penetration in the area is around 10% compared with the national average of 22%.

In contemplating a major cyclical slowdown in the US housing market, the broker believes the potential opportunity in the north-east states and the company's ability to gain market share mean a worst-case scenario could be a -10% decline in sales volumes in FY24 and no growth in FY25.

Overweight maintained. Target is reduced to $45.00 from $49.70.

This report was published on June 1, 2022.

Target price is $45.00 Current Price is $33.86 Difference: $11.14
If JHX meets the Jarden target it will return approximately 33% (excluding dividends, fees and charges).
Current consensus price target is $50.72, suggesting upside of 49.5%(ex-dividends)
The company's fiscal year ends in March.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 141.06 cents and EPS of 231.44 cents.
At the last closing share price the estimated dividend yield is 4.17%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.63.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 238.6, implying annual growth of N/A.
Current consensus DPS estimate is 121.7, implying a prospective dividend yield of 3.6%.
Current consensus EPS estimate suggests the PER is 14.2.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 125.99 cents and EPS of 209.26 cents.
At the last closing share price the estimated dividend yield is 3.72%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.18.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 264.3, implying annual growth of 10.8%.
Current consensus DPS estimate is 135.2, implying a prospective dividend yield of 4.0%.
Current consensus EPS estimate suggests the PER is 12.8.

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

JLG    JOHNS LYNG GROUP LIMITED

Building Products & Services – Overnight Price: $5.53

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

As another analyst takes coverage of Johns Lyng Group, FY23 earnings momentum is seen supported by growing revenue synergies and a step up in customer penetration.

The US, a key difference to Australia, consists of work that is bilaterally negotiated, i.e. no bid, which the broker believes will lead to fewer costs being passed through.

As a result, there is a possibility of some short-term challenges in cost recovery in the reconstruction channels. Buy rating maintained. Target is reduced to $7.50 from $8.70.

This report was published on June 1, 2022.

Target price is $7.50 Current Price is $5.53 Difference: $1.97
If JLG meets the Bell Potter target it will return approximately 36% (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 6.10 cents and EPS of 14.40 cents.
At the last closing share price the estimated dividend yield is 1.10%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 38.40.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 8.00 cents and EPS of 18.70 cents.
At the last closing share price the estimated dividend yield is 1.45%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.57.

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

LGP    LITTLE GREEN PHARMA LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $0.33

Canaccord Genuity rates ((LGP)) as Downgrade to Hold from Speculative Buy (3) –

Canaccord Genuity believes the state of the balance sheet will weigh on the stock in the short term and downgrades to Hold from Speculative Buy.

The company has gained meaningful market share because of the quality of its execution in several important jurisdictions and a high level of growth should be maintained over the next two years.

Still, a heightened cost base and the looming potential payment of a loan related to the acquisition in Denmark means funding is likely to be tight through to FY23, on the broker's projections. Target is reduced to $0.43 from $1.04.

This report was published on June 1, 2022.

Target price is $0.43 Current Price is $0.33 Difference: $0.1
If LGP meets the Canaccord Genuity target it will return approximately 30% (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 7.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 4.58.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 4.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 8.05.

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

MSB    MESOBLAST LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $0.85

Bell Potter rates ((MSB)) as Speculative Buy (1) –

Bell Potter assesses the major catalyst for Mesoblast in the next quarter will be the re-submission of the Biological Licence Application and, ultimately, an FDA decision on remestemcel in GvHD.

The broker observes the global market for biotech stocks is extremely depressed and sentiment is unlikely to change in the short term. Moreover, Bell Potter suspects the aversion to the sector has been the driver of the share price rather than valuation fundamentals.

Speculative Buy rating retained. Target is reduced to $1.80 from $2.00.

This report was published on June 1, 2022.

Target price is $1.80 Current Price is $0.85 Difference: $0.95
If MSB meets the Bell Potter target it will return approximately 112% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 20.82 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 4.08.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 20.41 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 4.17.

This company reports in USD. 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

NXS    NEXT SCIENCE LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $0.77

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

Canaccord Genuity remodels its forecasts for Next Science to allow for the transition to largely wholesale supplier of XP product to Zimmer and TelaBIO, from a direct sales model.

With the target price falling to $2.01 from $3.61, the broker believes revenue will move appreciably higher from here and a more reliable and short-term path to profitability will result. The Buy rating is maintained.

The analyst likes XBIO technology and its revenue generating potential, and the new Arrotex/Douglas Pharmaceuticals joint venture is thought to provide significant potential in the A&NZ market.

This report was published on May 30, 2022.

Target price is $2.01 Current Price is $0.77 Difference: $1.24
If NXS meets the Canaccord Genuity target it will return approximately 161% (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 minus 6.16 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 12.49.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of 7.12 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.81.

This company reports in USD. 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

PEB    PACIFIC EDGE LIMITED

Medical Equipment & Devices – Overnight Price: $0.69

Bell Potter rates ((PEB)) as Speculative Buy (1) –

FY22 results show strong growth, with a 49% increase in operating revenue and 33% increase in total revenue. Operating expenses were higher than Bell Potter anticipated, mainly because of increased research and sales & marketing expenditure.

Going forward, Kaiser has given a green light to the EMR integration process with the roll-out within the network seen as critical to the clinical adoption. Bell Potter retains a Speculative Buy rating with a target of $0.95, reduced from $1.10.

This report was published on June 1, 2022.

Target price is $0.95 Current Price is $0.69 Difference: $0.26
If PEB meets the Bell Potter target it will return approximately 38% (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 2.91 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 23.70.

Forecast for FY24:

Bell Potter forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 2.63 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 26.24.

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

PME    PRO MEDICUS LIMITED

Medical Equipment & Devices – Overnight Price: $41.68

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

Pro Medicus has signed a seven-year $28m contract with Allina Health for Visage 7, expected to go live in the second half of 2022. Goldman Sachs notes this represents one of the larger contract wins to date.

The software will be fully deployed in the public cloud and the broker points out Visage is the only solution currently available at this scale in the cloud.

While the business is a market leader, the broker believes the valuation is elevated and retains a Sell rating. Target is $44.80.

This report was published on June 2, 2022.

Target price is $44.80 Current Price is $41.68 Difference: $3.12
If PME meets the Goldman Sachs target it will return approximately 7% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 22.00 cents and EPS of 41.00 cents.
At the last closing share price the estimated dividend yield is 0.53%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 101.66.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 29.00 cents and EPS of 53.00 cents.
At the last closing share price the estimated dividend yield is 0.70%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 78.64.

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 ((PME)) as Initiation of coverage with Overweight (1) –

Wilsons initiates coverage on Pro Medicus with an Overweight rating and $51 target.

The broker assesses the provider of radiology enterprise imaging and workflow management software has reached a key point, with a sharp increase in contracts in the past 12 months that provide ongoing growth opportunity.

Industry factors are also aligning for the company including diagnostic volume growth and accelerated cloud adoption, as well as US healthcare consolidation. All this can be leveraged from new product expansion, the broker surmises.

This report was published on June 2, 2022.

Target price is $51.00 Current Price is $41.68 Difference: $9.32
If PME meets the Wilsons target it will return approximately 22% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 22.00 cents and EPS of 44.00 cents.
At the last closing share price the estimated dividend yield is 0.53%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 94.73.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 26.90 cents and EPS of 53.70 cents.
At the last closing share price the estimated dividend yield is 0.65%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 77.62.

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

REA    REA GROUP LIMITED

Real Estate – Overnight Price: $110.47

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

The company, in its investor briefing, appears comfortable with double-digit revenue and earnings growth throughout the cycle. There is improving momentum in India and growth in other domestic revenue streams such as Proptrack.

A clear positive, Goldman Sachs believes, is the commitment to more than 10% yield growth. The commitment also signals the pricing power of REA Group and its ability to offset any potential macro weakness.  Buy rating maintained. Target is $167.

This report was published on June 2, 2022.

Target price is $167.00 Current Price is $110.47 Difference: $56.53
If REA meets the Goldman Sachs target it will return approximately 51% (excluding dividends, fees and charges).
Current consensus price target is $133.43, suggesting upside of 22.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 155.00 cents and EPS of 309.00 cents.
At the last closing share price the estimated dividend yield is 1.40%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 35.75.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 310.4, implying annual growth of 26.9%.
Current consensus DPS estimate is 164.7, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 35.1.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 188.00 cents and EPS of 341.00 cents.
At the last closing share price the estimated dividend yield is 1.70%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 32.40.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 349.2, implying annual growth of 12.5%.
Current consensus DPS estimate is 191.2, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 31.2.

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

TGR    TASSAL GROUP LIMITED

Aquaculture – Overnight Price: $3.72

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

Goldman Sachs upgrades estimates for FY22-24 on the back of rising Atlantic salmon prices, moderated by some cost inflation.

The broker believes the company is well-placed to achieve strong price realisation amid supply discipline from domestic competitors and constraints on production and logistics globally.

Significantly improved supply/demand conditions should be a benefit in FY23. A Neutral rating is retained, with the broker's preference in the agriculture sector being Elders ((ELD)). Target is raised 11% to $4.65.

This report was published on June 2, 2022.

Target price is $4.65 Current Price is $3.72 Difference: $0.93
If TGR meets the Goldman Sachs target it will return approximately 25% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 17.00 cents and EPS of 28.00 cents.
At the last closing share price the estimated dividend yield is 4.57%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.29.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 19.00 cents and EPS of 31.00 cents.
At the last closing share price the estimated dividend yield is 5.11%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.00.

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

WES    WESFARMERS LIMITED

Apparel & Footwear – Overnight Price: $47.41

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

The Wesfarmers strategy briefing remained consistent with previously-announced priorities, Goldman Sachs observes.

The broker notes the business is undergoing a period of elevated investment at a time when Bunnings is challenged by softening macro conditions and the Kmart chain requires higher inventory to manage volatility in the supply chain.

At this point, the risk profile is considered elevated and value is being compressed so the broker reiterates a Sell rating. Target edges up to $40.00 from $39.40.

This report was published on June 2, 2022.

Target price is $40.00 Current Price is $47.41 Difference: minus $7.41 (current price is over target).
If WES meets the Goldman Sachs target it will return approximately minus 16% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $50.90, suggesting upside of 8.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 172.00 cents and EPS of 203.00 cents.
At the last closing share price the estimated dividend yield is 3.63%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.35.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 194.4, implying annual growth of -7.6%.
Current consensus DPS estimate is 162.7, implying a prospective dividend yield of 3.5%.
Current consensus EPS estimate suggests the PER is 24.1.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 174.00 cents and EPS of 204.00 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 23.24.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 206.5, implying annual growth of 6.2%.
Current consensus DPS estimate is 173.7, implying a prospective dividend yield of 3.7%.
Current consensus EPS estimate suggests the PER is 22.7.

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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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.

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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