Australian Broker Call *Extra* Edition – Jun 08, 2022

This story features AUDINATE GROUP LIMITED, and other companies. For more info SHARE ANALYSIS: AD8

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)

AD8 (2)   AKE   AMA   ASB   ATA   AX1   BEX   BOE   CHN   COE   DGO   EQT   FBU   HLA   HRL   IMM   KSN   PME   PPE   PPG   PRN   RED   RFG   SES   TRS   WES  

AD8    AUDINATE GROUP LIMITED

Hardware & Equipment – Overnight Price: $7.15

Canaccord Genuity rates ((AD8)) as Buy (1) –

Revenue in FY22 is expected to exceed US$30m amid improved trading conditions over recent months. The company has signalled a rebound and a record fourth quarter.

This relates to elevated product demand, in Canaccord Genuity's opinion as well as price rises in March and better inventory sources for chips.

The broker expects supply concerns will eventually abate and this should mean a material step up in revenue as the backlog unwinds. Buy rating and $8 target unchanged.

This report was published on June 6, 2022.

Target price is $8.00 Current Price is $7.15 Difference: $0.85
If AD8 meets the Canaccord Genuity target it will return approximately 12% (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 0.08 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 8937.50.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 0.05 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 14300.00.

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

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Shaw and Partners rates ((AD8)) as Buy (1) –

Audinate Group has continued its momentum over the fourth quarter with revenue guidance for FY22 of more than US$30m ahead of Shaw and Partners' estimates.

The broker also considers the outlook for FY23 solid as new products and price increases in March 2022 of up to 25% contribute.

Shaw and Partners suspects the worst is now over for the company and the "stellar" pricing power in the pro-AV market shields the business from potential downside that could be experienced by peers. Buy rating and $11.75 target maintained.

This report was published on June 7, 2022.

Target price is $11.75 Current Price is $7.15 Difference: $4.6
If AD8 meets the Shaw and Partners target it will return approximately 64% (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 5.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 143.00.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 3.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 216.67.

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

AKE    ALLKEM LIMITED

New Battery Elements – Overnight Price: $11.78

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

Canaccord Genuity continues to envisage short-term price support for lithium product markets and Allkem should be a key beneficiary with its unique product mix and growth outlook.

FY22 guidance has been lowered, driven by labour issues in Western Australia. Of note, pricing guidance has been increased for the June quarter to reflect the recent move to index-linked variable pricing from fixed-price supply contracts.

Canaccord Genuity retains a Buy rating with an unchanged $18 target.

This report was published on June 6, 2022.

Target price is $18.00 Current Price is $11.78 Difference: $6.22
If AKE meets the Canaccord Genuity target it will return approximately 53% (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 0.47 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 2506.38.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of 1.02 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 1154.90.

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

AMA    AMA GROUP LIMITED

Automobiles & Components – Overnight Price: $0.15

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

Bell Potter downgrades normalised EBITDA forecast for FY22 and FY23 by -50% and -24%, respectively, to be consistent with guidance for FY22 and below guidance for FY23, noting in the case of the latter there is an assumption of some successful renegotiation of insurer agreements.

The company expects to have cash of around $50m as of June 30, implying a net debt position of around -$170m. Bell Potter has chosen to move away from using comparable companies when determining the appropriate multiple for its valuation.

Target is reduced to $0.20 from $0.35 and a Hold rating maintained.

This report was published on June 2, 2022.

Target price is $0.20 Current Price is $0.15 Difference: $0.05
If AMA meets the Bell Potter target it will return approximately 33% (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 9.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 1.53.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 3.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 5.00.

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

ASB    AUSTAL LIMITED

Commercial Services & Supplies – Overnight Price: $1.95

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

Shaw and Partners assesses the next six-nine months will be crucial for Austal as further news on potential new contracts for the US Navy is anticipated. New contracts are required to replace the LCS program.

Even if the company fails to secure either the OPC or T-AGOS contracts, the broker believes the US Navy will still keep the mobile facility at a high level of utilisation, which historically implies an average of around $1bn in revenue per annum.

Buy rating maintained and the target is reduced to $2.45 from $2.75 to reflect the de-rating of some peers and delayed timing of some key contract awards.

This report was published on June 6, 2022.

Target price is $2.45 Current Price is $1.95 Difference: $0.5
If ASB meets the Shaw and Partners target it will return approximately 26% (excluding dividends, fees and charges).
Current consensus price target is $2.19, suggesting upside of 13.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 8.00 cents and EPS of 19.40 cents.
At the last closing share price the estimated dividend yield is 4.10%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.05.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 19.9, implying annual growth of -11.8%.
Current consensus DPS estimate is 8.3, implying a prospective dividend yield of 4.3%.
Current consensus EPS estimate suggests the PER is 9.7.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 8.00 cents and EPS of 16.40 cents.
At the last closing share price the estimated dividend yield is 4.10%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.89.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.6, implying annual growth of -16.6%.
Current consensus DPS estimate is 8.8, implying a prospective dividend yield of 4.6%.
Current consensus EPS estimate suggests the PER is 11.6.

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

ATA    ATTURRA LIMITED

Software & Services – Overnight Price: $0.84

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

Shaw and Partners observes tailwinds are emerging for Atturra post the federal election. The new government's policies are geared towards further onshoring of key IT, manufacturing and cyber. The business is also enjoying support through some macro trends via major cloud and software vendors.

The company has delivered two upgrades in the short period of time with financial results now expected to be 15% ahead of prospectus forecasts. Shaw and Partners flags its Buy rating and raises the target to $1.03 from $0.96. 

This report was published on June 6, 2022.

Target price is $1.03 Current Price is $0.84 Difference: $0.19
If ATA meets the Shaw and Partners target it will return approximately 23% (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 4.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.26.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.60 cents and EPS of 5.80 cents.
At the last closing share price the estimated dividend yield is 0.71%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.48.

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

AX1    ACCENT GROUP LIMITED

Apparel & Footwear – Overnight Price: $1.32

Bell Potter rates ((AX1)) as Buy (1) –

Bell Potter transfers coverage of Accent Group to another analyst and reiterates a  Buy rating and $2.20 target. Given the dominant market share in Australian footwear retailing, the broker considers the stock is trading at a conservative valuation and there is a long-term opportunity in terms of the athletics and leisure market.

The broker also believes the right strategies are in place, with expansion plans for Glue Stores and Style Runner. Moreover, margins and other performance indicators rank well relative to peers.

This report was published on June 3, 2022.

Target price is $2.20 Current Price is $1.32 Difference: $0.88
If AX1 meets the Bell Potter target it will return approximately 67% (excluding dividends, fees and charges).
Current consensus price target is $2.06, suggesting upside of 58.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 5.80 cents and EPS of 6.80 cents.
At the last closing share price the estimated dividend yield is 4.39%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.41.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 9.4, implying annual growth of -33.8%.
Current consensus DPS estimate is 8.4, implying a prospective dividend yield of 6.5%.
Current consensus EPS estimate suggests the PER is 13.8.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 10.70 cents and EPS of 13.30 cents.
At the last closing share price the estimated dividend yield is 8.11%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.92.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 14.7, implying annual growth of 56.4%.
Current consensus DPS estimate is 12.3, implying a prospective dividend yield of 9.5%.
Current consensus EPS estimate suggests the PER is 8.8.

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

BEX    BIKEEXCHANGE LIMITED

Sports & Recreation – Overnight Price: $0.02

Shaw and Partners – Cessation of coverage

This report was published on June 6, 2022.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 1.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 1.11.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 1.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 1.82.

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

BOE    BOSS ENERGY LIMITED

Uranium – Overnight Price: $2.19

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

Boss Energy has made final investment decision for the Honeymoon uranium asset and will now focus on securing a binding offtake agreement.

Bell Potter adjusts estimates to account for an extension in the timeline to first production although this has a minimal impact on projected value. Speculative Buy rating retained with the target reduced to $3.32 from $3.57.

This report was published on June 1, 2022.

Target price is $3.32 Current Price is $2.19 Difference: $1.13
If BOE 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 FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 1.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 146.00.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 4.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 52.14.

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

CHN    CHALICE MINING LIMITED

Industrial Metals – Overnight Price: $5.61

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

Chalice Mining has raised $100m in an institutional placement at $6 a share. Following the placement the company will have sufficient cash to fund its exploration and pre-development activities at Julimar for the next 18 months.

Bell Potter believes the placement was a good opportunity to secure funding certainty, enabling what is expected to be value-adding exploration and an initial scoping study. Speculative Buy rating maintained. Target is reduced to $11.10 from $12.02.

This report was published on June 2, 2022.

Target price is $11.10 Current Price is $5.61 Difference: $5.49
If CHN meets the Bell Potter target it will return approximately 98% (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

COE    COOPER ENERGY LIMITED

Crude Oil – Overnight Price: $0.30

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

Cooper Energy has updated FY22 guidance with underlying EBITDAX revised upwards by 18% at the mid point to $70-78m. The upgrade is underpinned by increased spot gas sales and an improved performance at Orbost.

Canaccord Genuity had expected an upgrade but the quantum was greater than forecast. Buy rating and $0.52 target maintained.

This report was published on June 7, 2022.

Target price is $0.52 Current Price is $0.30 Difference: $0.22
If COE meets the Canaccord Genuity target it will return approximately 73% (excluding dividends, fees and charges).
Current consensus price target is $0.29, suggesting downside of -5.8%(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 300.00.

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 17.65.

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 2.9.

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

DGO    DGO GOLD LIMITED

Gold & Silver – Overnight Price: $2.85

Bell Potter rates ((DGO)) as Speculative Hold (3) –

Gold Road Resources' ((GOR)) offer is for 2.25 shares per DGO Gold share, implying a takeover price of $2.95 based on close of business prices on May 27.

Directors have recommended the updated offer which has been extended to June 30, 2022. Bell Potter believes DGO Gold shareholders stand to gain exposure to a mid-tier ASX200 gold producer with a high quality portfolio.

Speculative Hold rating maintained. Target is reduced to $ 2.91 from $4.37, equal to the current implied consideration.

This report was published on June 2, 2022.

Target price is $2.91 Current Price is $2.85 Difference: $0.06
If DGO meets the Bell Potter target it will return approximately 2% (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 19.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 14.32.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 6.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 43.18.

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

EQT    EQT HOLDINGS LIMITED

Diversified Financials – Overnight Price: $27.00

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

Shaw and Partners reviews the investment outlook for EQT Holdings. Equity markets may have been bearish recently yet the broker believes the longer-term revenue drivers are firm.

The broker is attracted to the stock predominantly because of its leverage to Australia's growing and complex superannuation sector.

The projected growth for the sector should result in increased funds under management, administration, advice and supervision. The operations in the UK and Ireland also offer potential upside. Buy rating and $37 target maintained.

This report was published on June 7, 2022.

Target price is $37.00 Current Price is $27.00 Difference: $10
If EQT meets the Shaw and Partners target it will return approximately 37% (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 99.00 cents and EPS of 123.90 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 21.79.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 111.00 cents and EPS of 138.70 cents.
At the last closing share price the estimated dividend yield is 4.11%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.47.

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

FBU    FLETCHER BUILDING LIMITED

Building Products & Services – Overnight Price: $4.94

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

In New Zealand, as excess building consents are worked through, Jarden expects volumes will remain at capacity throughout FY24 and slow quickly into FY25.

Material margins are expected to hit new highs through FY23 before returning to normal in FY24 and trough in FY25.

The broker upgrades FY23 EBIT estimates to NZ$875m and downgrades FY25 to NZ$592m. Overweight maintained. Target is reduced to NZ$6.14 from NZ$7.46.

This report was published on June 2, 2022.

Current Price is $4.94. Target price not assessed.
Current consensus price target is $9.30, suggesting upside of 87.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 EPS of 56.16 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.80.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 50.0, implying annual growth of N/A.
Current consensus DPS estimate is 35.5, implying a prospective dividend yield of 7.1%.
Current consensus EPS estimate suggests the PER is 9.9.

Forecast for FY23:

Jarden forecasts a full year FY23 EPS of 65.73 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.52.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 53.9, implying annual growth of 7.8%.
Current consensus DPS estimate is 37.7, implying a prospective dividend yield of 7.6%.
Current consensus EPS estimate suggests the PER is 9.2.

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

HLA    HEALTHIA LIMITED

Healthcare services – Overnight Price: $1.56

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

Healthia has experienced constrained performance over FY22, guiding to revenue of $195-200m and U-EBITDA of $22.5-25m. This is below Shaw and Partners' estimates.

The causes have been the impacts of the pandemic and labour shortages along with isolated flooding events across Queensland and NSW.

In other news, the company has acquired three hand therapy clinics across Queensland and Victoria which should contribute $1.58m in underlying revenue and $430,000 in underlying EBITDA.

The broker remains positive on the stock and retains a Buy rating, reducing the target to $2.73 from $3.05.

This report was published on June 7, 2022.

Target price is $2.73 Current Price is $1.56 Difference: $1.17
If HLA meets the Shaw and Partners target it will return approximately 75% (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 3.10 cents and EPS of 6.50 cents.
At the last closing share price the estimated dividend yield is 1.99%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.00.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 6.40 cents and EPS of 12.70 cents.
At the last closing share price the estimated dividend yield is 4.10%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.28.

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

HRL    HRL HOLDINGS LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $0.08

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

Canaccord Genuity expects the operating environment will be much improved heading into FY23 as covid restrictions ease in New Zealand and the recent investment in business development  for Analytica bears fruit.

HRL Holdings has settled an asset sale agreement which divests its geotechnical engineering business for up to $1.8m. The broker considers the divestment a sound move given the highly competitive market.

Buy rating retained. Target is reduced to $0.16 from $0.17.

This report was published on June 6, 2022.

Target price is $0.16 Current Price is $0.08 Difference: $0.08
If HRL meets the Canaccord Genuity target it will return approximately 100% (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 0.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 80.00.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of 0.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.00.

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

IMM    IMMUTEP LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $0.36

Wilsons rates ((IMM)) as Overweight (1) –

Data from the phase II TACTI-002 trial in non-small cell lung cancer has been presented at a major US oncology conference. Wilsons assesses the latest data lays out a path to phase III and this will open up "exciting opportunities" for Immutep.

The Overweight rating and target price of $0.91 are retained.

This report was published on June 6, 2022.

Target price is $0.91 Current Price is $0.36 Difference: $0.55
If IMM meets the Wilsons target it will return approximately 153% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 4.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 9.00.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of 9.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 3.91.

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

KSN    KINGSTON RESOURCES LIMITED

Mining – Overnight Price: $0.14

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

Kingston Resources has published a definitive feasibility study for the Misima gold project in PNG. A production case of 2.4m ounces is assessed with 36% of tonnage containing indicated/inferred resources and 64% reserves.

On a first glance, Canaccord Genuity assesses a longer mine life, now envisaged to be 20 years, is likely to be more than offset by a higher funding hurdle and this may force a re-evaluation of funding alternatives. Speculative Buy rating and $0.70 target maintained.

This report was published on June 6, 2022.

Target price is $0.70 Current Price is $0.14 Difference: $0.56
If KSN meets the Canaccord Genuity target it will return approximately 400% (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 2.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.00.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of 4.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 3.50.

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: $41.59

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

Pro Medicus has announced six new contracts since January 2021 with its latest being a $28m deal over seven years with Allina Health. Bell Potter expects further growth in contracts, assessing the company has "barely scratched the surface" of the market in the US.

Visage appears to be the emerging standard for the viewing of radiology images in the US, being well represented in academic hospitals and now taking share in the IDN market. Buy rating and $55 target maintained.

This report was published on June 2, 2022.

Target price is $55.00 Current Price is $41.59 Difference: $13.41
If PME meets the Bell Potter target it will return approximately 32% (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 21.80 cents and EPS of 43.30 cents.
At the last closing share price the estimated dividend yield is 0.52%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 96.05.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 27.50 cents and EPS of 55.10 cents.
At the last closing share price the estimated dividend yield is 0.66%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 75.48.

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

PPE    PEOPLEIN LIMITED

Jobs & Skilled Labour Services – Overnight Price: $3.29

Moelis rates ((PPE)) as Buy (1) –

The company has acquired Food Industry People for $45m up front. This is a business that provides 4500 workers in the food/agricultural industries under the Pacific Australia Labour Mobility scheme.

Moelis notes the acquisition provides access to government-supported international workers not only in the food industry but within other verticals such as aged care and community services and could provide a competitive advantage for Peoplein, given the labour shortages in Australia.

The broker also believes the modestly higher price for the acquisition versus historical acquisitions is justified. Buy rating maintained. Target is reduced to $4.56 from $5.09.

This report was published on June 6, 2022.

Target price is $4.56 Current Price is $3.29 Difference: $1.27
If PPE meets the Moelis target it will return approximately 39% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 12.60 cents and EPS of 29.20 cents.
At the last closing share price the estimated dividend yield is 3.83%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.27.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 14.80 cents and EPS of 36.80 cents.
At the last closing share price the estimated dividend yield is 4.50%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.94.

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

PPG    PRO-PAC PACKAGING LIMITED

Paper & Packaging – Overnight Price: $0.76

Shaw and Partners – Cessation of coverage

This report was published on June 6, 2022.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 5.40 cents and EPS of 11.20 cents.
At the last closing share price the estimated dividend yield is 7.11%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.79.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 5.70 cents and EPS of 14.30 cents.
At the last closing share price the estimated dividend yield is 7.50%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.31.

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

PRN    PERENTI GLOBAL LIMITED

Mining Sector Contracting – Overnight Price: $0.77

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

Perenti Global is holding a strategy briefing which Canaccord Genuity expects will focus on targeted returns, staff safety and capital allocation. Meanwhile, the company has narrowed FY22 guidance to EBIT of $170-175m.

The broker increases estimates for earnings per share by 7% for FY22 and 9% for FY23 and suggests the latest update is implying a strong exit run rate into FY23. Rationalisation of operations continues with -$135m in divestments during FY22.

Buy rating. Target is reduced to $0.91 from $1.01.

This report was published on June 8, 2022.

Target price is $0.91 Current Price is $0.77 Difference: $0.14
If PRN meets the Canaccord Genuity target it will return approximately 18% (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 7.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.85.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of 9.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.37.

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

RED    RED 5 LIMITED

Gold & Silver – Overnight Price: $0.38

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

Red 5 has poured its first gold at KOTH. Canaccord Genuity is impressed, as the environment has been particularly challenging during the construction and commissioning.

The broker lowers its discount rate for the project to 8% and as a result the target increases to $0.50 from $0.46. The broker forecasts the project to produce on average 150,000 ounces per annum at an AISC (all-in costs) of $1473/oz over its 16-year mine life. Speculative Buy rating retained.

This report was published on June 6, 2022.

Target price is $0.50 Current Price is $0.38 Difference: $0.12
If RED meets the Canaccord Genuity target it will return approximately 32% (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 19.00.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of 3.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.67.

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

RFG    RETAIL FOOD GROUP LIMITED

Food, Beverages & Tobacco – Overnight Price: $0.05

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

Shaw and Partners reviews the investment thesis for Retail Food following the recent sell-off. The broker considers the stock oversold from a price that was already too low relative to the risk/reward on offer.

Despite the challenges, the management team is expected to continue turning the business around and the broker is increasingly optimistic that the downside related to the pandemic is receding.

Across its key peer set, Retail Food is one of the highest-margin businesses yet trades at one of the lowest multiples, the broker adds. Buy rating is strongly reiterated and the target reduced to $0.12 from $0.13.

This report was published on June 6, 2022.

Target price is $0.12 Current Price is $0.05 Difference: $0.07
If RFG meets the Shaw and Partners target it will return approximately 140% (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 0.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.14.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.40 cents and EPS of 0.80 cents.
At the last closing share price the estimated dividend yield is 8.00%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.25.

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

SES    SECOS GROUP LIMITED

Paper & Packaging – Overnight Price: $0.14

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

The company has signalled delays from a major customer and shipping have continued to affect the business. As a result, only modest topline line growth is expected in FY22 and a net loss is still expected for the year.

Canaccord Genuity revises estimates for FY22, adopting a more conservative growth profile for FY23 and FY24.

The broker acknowledges management has highlighted signs of improving input costs which bodes well for margin recovery. Speculative Buy rating unchanged. Target is reduced to $0.20 from $0.29.

This report was published on June 7, 2022.

Target price is $0.20 Current Price is $0.14 Difference: $0.06
If SES meets the Canaccord Genuity target it will return approximately 43% (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 0.00 cents.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of 0.00 cents.

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

TRS    REJECT SHOP LIMITED

Household & Personal Products – Overnight Price: $3.43

Jarden rates ((TRS)) as Buy (1) –

While Jarden is yet to see trading down (consumers seeking discounted offerings), overseas results support this trend. As a result, the broker retains its Buy rating for the Reject Shop.

Nonetheless, ongoing supply chain challenges have resulted in greater cost of selling goods (COGS) pressures than previously forecast by the analyst. In addition, the interest rate outlook impacts the target price, which is reduced to $8.30 from $10.40. 

This report was published on June 1, 2022.

Target price is $8.30 Current Price is $3.43 Difference: $4.87
If TRS meets the Jarden target it will return approximately 142% (excluding dividends, fees and charges).
Current consensus price target is $7.53, suggesting upside of 114.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 0.00 cents and EPS of 14.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 11.3, implying annual growth of -48.0%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 31.1.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 20.00 cents and EPS of 40.20 cents.
At the last closing share price the estimated dividend yield is 5.83%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.53.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 27.3, implying annual growth of 141.6%.
Current consensus DPS estimate is 10.7, implying a prospective dividend yield of 3.0%.
Current consensus EPS estimate suggests the PER is 12.9.

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

WES    WESFARMERS LIMITED

Consumer Products & Services – Overnight Price: $45.58

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

The strategy update has signalled to Jarden that management is confident about its ability to win market share profitably during an inflationary environment while continuing to invest in digital and new business.

Estimates are lifted for earnings per share in FY22 and FY23 but the valuation is reduced because of weaker cash flow.

The broker also believes Wesfarmers should benefit from adverse covid impacts in the first half of FY23 and the housing cycle over FY23, supporting earnings growth. Overweight maintained. Target price is reduced to $54.40 from $58.90.

This report was published on June 2, 2022.

Target price is $54.40 Current Price is $45.58 Difference: $8.82
If WES meets the Jarden target it will return approximately 19% (excluding dividends, fees and charges).
Current consensus price target is $50.90, suggesting upside of 12.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 EPS of 194.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.40.

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 3.6%.
Current consensus EPS estimate suggests the PER is 23.4.

Forecast for FY23:

Jarden forecasts a full year FY23 EPS of 213.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.31.

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 3.8%.
Current consensus EPS estimate suggests the PER is 22.0.

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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