Australian Broker Call *Extra* Edition – Jun 09, 2022

This story features ALKANE RESOURCES LIMITED, and other companies. For more info SHARE ANALYSIS: ALK

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)

ALK   APC   AZJ   CWY   DUB   ELD   FSF   GNC (2)   HCW   HDN   IMM   JAN   MNY   PTM   PWH   SGM   STA   TLC   Z2U  

ALK    ALKANE RESOURCES LIMITED

Gold & Silver – Overnight Price: $0.96

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

Alkane Resources has announced an initial resource for its Boda deposit at the Northern Molong project. This is a very large gold and copper deposit containing 5.2m ounces of gold and 900,000t of copper at a cut-off grade of 0.3g/t gold equivalent.

Bell Potter believes this is a resource that has excellent potential to support a large economic mining operation, with the addition of a significant inventory of copper that should mean the business is a key beneficiary of the electrification of the global economy.

Accordingly, the target is raised to $1.30 from $1.15. Buy rating maintained.

This report was published on June 7, 2022.

Target price is $1.30 Current Price is $0.96 Difference: $0.34
If ALK meets the Bell Potter target it will return approximately 35% (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 4.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.00.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of 5.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.84.

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

APC    AUSTRALIAN POTASH LIMITED

Agriculture – Overnight Price: $0.06

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

Australian Potash has updated on the brine flow at Lake Wells sulphate of potash project. Shaw & Partners concludes from the update that there will be lower initial as well as sustaining capital costs.

This is positive to valuation at realised prices of US$380/t. The broker believes the resource base in this project is higher quality compared to peers, and given the excellent commodity fundamentals and solid financials maintains a Buy rating and 21c target.

This report was published on June 8, 2022.

Target price is $0.21 Current Price is $0.06 Difference: $0.15
If APC meets the Shaw and Partners target it will return approximately 250% (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 0.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 12.00.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 0.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 15.00.

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

AZJ    AURIZON HOLDINGS LIMITED

Transportation & Logistics – Overnight Price: $4.20

Jarden rates ((AZJ)) as Neutral (3) –

Aurizon Holdings originally intended to complete the purchase of OneRail early in 2022 but the timeline has been extended following a delay in regulatory approvals. While envisaging only modest risks to completing the deal, Jarden awaits ACCC approval before integrating the purchase into forecasts.

The broker contemplates a OneRail Coal (east coast rail) trade sale scenario and its implications for the balance sheet and future capital returns, believing this could provide Aurizon Holdings with the ability to restore dividend appeal sooner.

Jarden retains a Neutral rating and $4.35 target.

This report was published on June 8, 2022.

Target price is $4.35 Current Price is $4.20 Difference: $0.15
If AZJ meets the Jarden target it will return approximately 4% (excluding dividends, fees and charges).
Current consensus price target is $3.71, suggesting downside of -10.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 27.20 cents and EPS of 27.20 cents.
At the last closing share price the estimated dividend yield is 6.48%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.44.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 27.7, implying annual growth of -29.1%.
Current consensus DPS estimate is 21.6, implying a prospective dividend yield of 5.2%.
Current consensus EPS estimate suggests the PER is 15.0.

Forecast for FY23:

Jarden forecasts a full year FY23 EPS of 28.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.79.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 30.2, implying annual growth of 9.0%.
Current consensus DPS estimate is 23.3, implying a prospective dividend yield of 5.6%.
Current consensus EPS estimate suggests the PER is 13.8.

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

CWY    CLEANAWAY WASTE MANAGEMENT LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $2.89

Jarden rates ((CWY)) as Buy (1) –

Cleanaway Waste Management is on a course to achieve further strategic value and competitive advantage, Jarden asserts.

While there are a number of cost headwinds, the broker expects further announcements on optimisation and more effective use of data should support the underlying EBITDA margin.

Returns for waste-to-energy remain uncertain and expenditure will modestly affect free cash flow yet there is a negligible impact on gearing.

Jarden forecasts a three-year growth rate for earnings per share to FY25 of 21% and considers the 11.0x enterprise value/EBITDA for FY23 demonstrates value. Buy rating and $3.30 target retained.

This report was published on June 9, 2022.

Target price is $3.30 Current Price is $2.89 Difference: $0.41
If CWY meets the Jarden target it will return approximately 14% (excluding dividends, fees and charges).
Current consensus price target is $3.12, suggesting upside of 11.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 4.60 cents and EPS of 7.10 cents.
At the last closing share price the estimated dividend yield is 1.59%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 40.70.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 7.1, implying annual growth of 0.6%.
Current consensus DPS estimate is 4.6, implying a prospective dividend yield of 1.6%.
Current consensus EPS estimate suggests the PER is 39.4.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 5.30 cents and EPS of 10.20 cents.
At the last closing share price the estimated dividend yield is 1.83%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 9.6, implying annual growth of 35.2%.
Current consensus DPS estimate is 5.8, implying a prospective dividend yield of 2.1%.
Current consensus EPS estimate suggests the PER is 29.2.

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

DUB    DUBBER CORPORATION LIMITED

Cloud services – Overnight Price: $0.78

Sequoia rates ((DUB)) as Downgrade to Hold from Buy (3) –

Dubber Corp has an improving base business with increasing penetration in telco and rising average revenue per unit as well as average revenue per telco.

Nevertheless, Sequoia is concerned about rapidly rising costs, which were significantly higher than forecast in the third quarter.

The third quarter report revealed revenue of $9.25m, up 40%, and $25.9m for the year to date, up 83% including acquisitions. Closing cash of $97m at the end of March, observed to be enough for 2.5 years at the current cash burn rate.

The broker downgrades to Hold from Buy and reduces the target to $1.05 from $4.50.

This report was published on May 31, 2022.

Target price is $1.05 Current Price is $0.78 Difference: $0.27
If DUB meets the Sequoia target it will return approximately 35% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Sequoia forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 17.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 4.36.

Forecast for FY23:

Sequoia forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 15.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 5.13.

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

ELD    ELDERS LIMITED

Agriculture – Overnight Price: $13.48

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

The ABARES June crop report bodes well for Elders, Shaw and Partners asserts. Favourable planting conditions mean the winter crop in 2022-23 could reach 23.4m hectares nationally and production reach 50.9mt.

The summer crop for 2021-22 is expected to reach a new record of 5.5mt.

While the broker forecasts a mean reversion to the conditions from FY24 onwards, the upcoming winter crop combined with northern hemisphere supply issues should result in solid earnings growth for Australian farmers over the next 12-24 months and underpin earnings for Elders over that time frame.

Buy rating maintained. Target is $20.

This report was published on June 8, 2022.

Target price is $20.00 Current Price is $13.48 Difference: $6.52
If ELD meets the Shaw and Partners target it will return approximately 48% (excluding dividends, fees and charges).
Current consensus price target is $15.20, suggesting upside of 14.7%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 56.00 cents and EPS of 98.80 cents.
At the last closing share price the estimated dividend yield is 4.15%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.64.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 96.5, implying annual growth of 0.7%.
Current consensus DPS estimate is 50.5, implying a prospective dividend yield of 3.8%.
Current consensus EPS estimate suggests the PER is 13.7.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 56.00 cents and EPS of 104.10 cents.
At the last closing share price the estimated dividend yield is 4.15%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.95.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 91.3, implying annual growth of -5.4%.
Current consensus DPS estimate is 47.6, implying a prospective dividend yield of 3.6%.
Current consensus EPS estimate suggests the PER is 14.5.

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

FSF    FONTERRA SHAREHOLDERS FUND

Dairy – Overnight Price: $2.79

Jarden rates ((FSF)) as Neutral (3) –

As there has been downward pressure on the Fonterra Shareholders Fund, management has looked to provide some assurance, emphasising its EPS guidance of NZ25-35c per share and reminding farmers they can purchase shares up to 2x their milk supply.

Jarden asserts the market is signalling a lack of confidence in the stock amid uncertainty on the sustainability of returns.

Furthermore, the broker believes Fonterra needs to consider its response to the market signal and focus on how confidence can be increased. Neutral maintained. Target is reduced to NZ$3.62 from NZ$4.00.

This report was published on June 8, 2022.

Current Price is $2.79. Target price not assessed.
The company's fiscal year ends in July.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 18.78 cents and EPS of 30.80 cents.
At the last closing share price the estimated dividend yield is 6.73%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.06.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 21.60 cents and EPS of 34.65 cents.
At the last closing share price the estimated dividend yield is 7.74%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.05.

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

GNC    GRAINCORP LIMITED

Agriculture – Overnight Price: $10.47

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

The latest ABARES crop report has flagged a forecast for the winter harvest on the east coast of 24.7mt, the highest June forecast ever and ahead of the previous year's record harvest of 22.1mt.

Bell Potter does note that, historically, the June report has been the least accurate of the estimates, with a range of 69-188% variability since 2010. No material changes are made to GrainCorp earnings forecasts. Target is lifted to $10.00 from $9.90. Hold maintained.

This report was published on June 7, 2022.

Target price is $10.00 Current Price is $10.47 Difference: minus $0.47 (current price is over target).
If GNC meets the Bell Potter target it will return approximately minus 4% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $10.23, suggesting downside of -1.6%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 55.00 cents and EPS of 161.80 cents.
At the last closing share price the estimated dividend yield is 5.25%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.47.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 157.9, implying annual growth of 159.0%.
Current consensus DPS estimate is 84.8, implying a prospective dividend yield of 8.2%.
Current consensus EPS estimate suggests the PER is 6.6.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 42.00 cents and EPS of 98.90 cents.
At the last closing share price the estimated dividend yield is 4.01%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.59.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 102.6, implying annual growth of -35.0%.
Current consensus DPS estimate is 52.9, implying a prospective dividend yield of 5.1%.
Current consensus EPS estimate suggests the PER is 10.1.

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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Wilsons rates ((GNC)) as Market Weight (3) –

ABARES  has released the June crop report which includes an initial forecast for the 2022-23 east coast winter crop of 24.7mt. While the area planted was down slightly, Wilsons notes it was broadly consistent with expectations.

Yield forecasts remain challenging at this early stage although moisture levels remain favourable. The broker has placed the earnings implications under review.

Market Weight rating maintained. Target is $9.71.

This report was published on June 7, 2022.

Target price is $9.71 Current Price is $10.47 Difference: minus $0.76 (current price is over target).
If GNC meets the Wilsons target it will return approximately minus 7% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $10.23, suggesting downside of -1.6%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 48.00 cents and EPS of 152.80 cents.
At the last closing share price the estimated dividend yield is 4.58%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.85.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 157.9, implying annual growth of 159.0%.
Current consensus DPS estimate is 84.8, implying a prospective dividend yield of 8.2%.
Current consensus EPS estimate suggests the PER is 6.6.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 34.00 cents and EPS of 69.00 cents.
At the last closing share price the estimated dividend yield is 3.25%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.17.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 102.6, implying annual growth of -35.0%.
Current consensus DPS estimate is 52.9, implying a prospective dividend yield of 5.1%.
Current consensus EPS estimate suggests the PER is 10.1.

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

HCW    HEALTHCO HEALTHCARE & WELLNESS REIT

REITs – Overnight Price: $1.74

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

HealthCo Healthcare & Wellness REIT reported preliminary June net valuation gains of $25m, equating to an increase of 4.1% over December 2021 and an 8c per unit uplift in net tangible asset valuation.

The stock is one of Goldman Sachs' top picks in the sector, with a combination of expansion opportunities across the care spectrum and a net cash position that provides room to pursue external growth. Buy rating retained. Target is $2.40, reduced from $2.56.

This report was published on June 7, 2022.

Target price is $2.40 Current Price is $1.74 Difference: $0.66
If HCW meets the Goldman Sachs target it will return approximately 38% (excluding dividends, fees and charges).
Current consensus price target is $2.35, suggesting upside of 38.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 7.00 cents and EPS of 5.00 cents.
At the last closing share price the estimated dividend yield is 4.02%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 34.80.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 6.8, implying annual growth of N/A.
Current consensus DPS estimate is 7.9, implying a prospective dividend yield of 4.6%.
Current consensus EPS estimate suggests the PER is 25.0.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 8.00 cents and EPS of 8.00 cents.
At the last closing share price the estimated dividend yield is 4.60%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.75.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 9.4, implying annual growth of 38.2%.
Current consensus DPS estimate is 9.2, implying a prospective dividend yield of 5.4%.
Current consensus EPS estimate suggests the PER is 18.1.

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

HDN    HOMECO DAILY NEEDS REIT

REITs – Overnight Price: $1.32

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

HomeCo Daily Needs REIT reported net valuation uplift of 4.6% in June and a $0.10 uplift to net tangible asset valuation. Guidance has been reaffirmed.

Goldman Sachs believes the stock is undervalued given its diversified tenant base, while it remains well-positioned to benefit from the shift to omni-channel retailing.

Moreover, external growth opportunities should drive earnings over the medium term. The broker retains a Buy rating and reduces the target to $1.65 from $1.70.

This report was published on June 7, 2022.

Target price is $1.65 Current Price is $1.32 Difference: $0.33
If HDN meets the Goldman Sachs target it will return approximately 25% (excluding dividends, fees and charges).
Current consensus price target is $1.60, suggesting upside of 26.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 8.00 cents and EPS of 9.00 cents.
At the last closing share price the estimated dividend yield is 6.06%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.67.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.7, implying annual growth of 52.9%.
Current consensus DPS estimate is 8.2, implying a prospective dividend yield of 6.5%.
Current consensus EPS estimate suggests the PER is 14.6.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 9.00 cents and EPS of 9.00 cents.
At the last closing share price the estimated dividend yield is 6.82%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.67.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 9.1, implying annual growth of 4.6%.
Current consensus DPS estimate is 8.6, implying a prospective dividend yield of 6.8%.
Current consensus EPS estimate suggests the PER is 14.0.

Market Sentiment: 0.7
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: $0.37

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

Immutep has provided new data from the phase 2 trial for the lead candidate in patients with untreated non-small cell lung cancer.

Bell Potter believes this is an asset that is under close watch by large pharmaceutical companies including Merck which provided Keytruda as a combination drug in the trial. Speculative Buy rating maintained. Target is $0.65.

This report was published on June 7, 2022.

Target price is $0.65 Current Price is $0.37 Difference: $0.28
If IMM meets the Bell Potter target it will return approximately 76% (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 4.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 9.02.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 3.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 10.88.

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

JAN    JANISON EDUCATION GROUP LIMITED

Education & Tuition – Overnight Price: $0.60

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

Bell Potter transfers coverage to another analyst and maintains a positive view on the outlook for Janison Education. The scale benefits of the transition in the business model are being realised as well as higher-margin, recurring contract revenues.

The broker believes the company is well placed to provide digital infrastructure for increasing expenditure on technology in education. Rating is upgraded to Buy from Hold. Target is $0.90.

This report was published on June 7, 2022.

Target price is $0.90 Current Price is $0.60 Difference: $0.3
If JAN meets the Bell Potter target it will return approximately 50% (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 3.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 20.00.

Forecast for FY23:

Bell Potter 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 54.55.

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

MNY    MONEY3 CORPORATION LIMITED

Business & Consumer Credit – Overnight Price: $2.18

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

The trading update from Money3 points to strong growth in its prime lending operation and the expansion of warehouse facilities. Yet, at a group level originations growth appears to have stalled, Canaccord Genuity observes.

The broker further assesses that New Zealand is sluggish post the reopening of trade earlier this year and believes there will be an lower-than-forecast loan book as of the balance date as well as a lower average yield.

Non-bank consumer lenders tend to be particularly sensitive to higher fuel and rent as well as unemployment, the broker adds. Hence, the sector will remain under pressure until the market becomes more confident.

Still, the business is well capitalised at this point in the broker retains a Buy rating. Target is reduced to $3.00 fromm $4.25.

This report was published on June 8, 2022.

Target price is $3.00 Current Price is $2.18 Difference: $0.82
If MNY meets the Canaccord Genuity target it will return approximately 38% (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 10.00 cents and EPS of 20.00 cents.
At the last closing share price the estimated dividend yield is 4.59%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.90.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 12.00 cents and EPS of 24.00 cents.
At the last closing share price the estimated dividend yield is 5.50%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.08.

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

PTM    PLATINUM ASSET MANAGEMENT LIMITED

Wealth Management & Investments – Overnight Price: $1.75

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

Platinum Asset Management's funds under management have fallen -16.6% in the year to date and Bell Potter expects average FUM for  the year ending June 2022 will be -7.4% lower.

The lower starting base of FUM also means there should be a shock in 2023, and revenue drop further, the broker adds.

Hence, in the absence of lower expenses and amid lower revenue, a declining dividend is increasingly likely.

The main unknown, the broker assesses, is how aggressive the company will be in cutting its expense base. Hold maintained. Target is $1.70.

This report was published on June 8, 2022.

Target price is $1.70 Current Price is $1.75 Difference: minus $0.05 (current price is over target).
If PTM meets the Bell Potter target it will return approximately minus 3% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $2.27, suggesting upside of 28.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 20.00 cents and EPS of 19.30 cents.
At the last closing share price the estimated dividend yield is 11.43%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.07.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 21.2, implying annual growth of -24.7%.
Current consensus DPS estimate is 19.7, implying a prospective dividend yield of 11.2%.
Current consensus EPS estimate suggests the PER is 8.3.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 15.00 cents and EPS of 14.00 cents.
At the last closing share price the estimated dividend yield is 8.57%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.8, implying annual growth of -16.0%.
Current consensus DPS estimate is 17.3, implying a prospective dividend yield of 9.8%.
Current consensus EPS estimate suggests the PER is 9.9.

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

PWH    PWR HOLDINGS LIMITED

Automobiles & Components – Overnight Price: $6.93

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

Bell Potter reviews forecasts for PWR Holdings in light of recent commentary by the company. The broker makes modest downgrades based on a reduction in margin forecasts, amid a strong rise in staffing as well as the recent strength of the Australian dollar versus the British pound.

The broker assumes the company raises some prices next year to offset the currency movement, although still assumes a net negative impact. Rating is upgraded to Buy from Hold with the potential for a strong FY22 result in August. Target is reduced to $9.25 from $10.00.

This report was published on June 7, 2022.

Target price is $9.25 Current Price is $6.93 Difference: $2.32
If PWH 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 10.70 cents and EPS of 19.30 cents.
At the last closing share price the estimated dividend yield is 1.54%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 35.91.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 12.60 cents and EPS of 23.10 cents.
At the last closing share price the estimated dividend yield is 1.82%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.00.

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

SGM    SIMS LIMITED

Steel & Scrap – Overnight Price: $18.30

Jarden rates ((SGM)) as Downgrade to Overweight from Buy (2) –

Earnings guidance for FY22 was around 6-9% above Jarden's expectations. Yet, a record level of profit forecast for FY22 could be challenging to sustain in FY23, the broker asserts, and downgrades to Overweight from Buy.

Over the medium to longer term, the broker believes rising demand for low-emissions steel and the circular economy will drive demand for both ferrous and nonferrous scrap. This could mean scrap metal prices remain at higher levels than historical averages. Target is reduced to $21.60 from $22.70.

This report was published on June 8, 2022.

Target price is $21.60 Current Price is $18.30 Difference: $3.3
If SGM meets the Jarden target it will return approximately 18% (excluding dividends, fees and charges).
Current consensus price target is $21.75, suggesting upside of 18.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 83.00 cents and EPS of 288.50 cents.
At the last closing share price the estimated dividend yield is 4.54%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.34.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 271.4, implying annual growth of 137.9%.
Current consensus DPS estimate is 81.2, implying a prospective dividend yield of 4.4%.
Current consensus EPS estimate suggests the PER is 6.8.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 71.50 cents and EPS of 238.30 cents.
At the last closing share price the estimated dividend yield is 3.91%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.68.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 191.4, implying annual growth of -29.5%.
Current consensus DPS estimate is 61.4, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 9.6.

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

STA    STRANDLINE RESOURCES LIMITED

Mineral Sands – Overnight Price: $0.37

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

Strandline Resources has provided an update on the Coburn mineral sands project which is 75% complete. It is expected to produce its first heavy mineral concentrate this year, on time and on budget.

Strandline is also fully funded to complete the project. Shaw and Partners highlights that over 65% of the operating costs have been locked in at or below the estimates in the definitive feasibility study. Buy rating and $0.80 target maintained.

This report was published on June 8, 2022.

Target price is $0.80 Current Price is $0.37 Difference: $0.43
If STA meets the Shaw and Partners target it will return approximately 116% (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 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 37.00.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of 3.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.88.

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

TLC    LOTTERY CORPORATION LIMITED

Gaming – Overnight Price: $4.59

Jarden rates ((TLC)) as Neutral (3) –

Jarden highlights the potential risks to the Lottery Corp over the medium term, and to Powerball sales, from the recent OzLotto changes, although believes the changes will increase sales in the short term.

The broker believes little attention is being paid to the potential for casual or "jackpot" players to consider the purchase more "discretionary" as well as empirical evidence from other major lottery game reforms that failed to stimulate sustained demand.

The broker revises earnings assumptions, reducing the target to $4.49 from $4.54. Neutral maintained.

This report was published on June 8, 2022.

Target price is $4.49 Current Price is $4.59 Difference: minus $0.1 (current price is over target).
If TLC meets the Jarden target it will return approximately minus 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $5.18, suggesting upside of 13.2%(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 16.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.2, 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 28.3.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 112.50 cents and EPS of 15.60 cents.
At the last closing share price the estimated dividend yield is 24.51%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.42.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.6, implying annual growth of 8.6%.
Current consensus DPS estimate is 16.0, implying a prospective dividend yield of 3.5%.
Current consensus EPS estimate suggests the PER is 26.0.

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

Z2U    ZOOM2U TECHNOLOGIES LIMITED

Transportation & Logistics – Overnight Price: $0.22

Shaw and Partners rates ((Z2U)) as Buy (1) –

Zoom2u Technologies has signed an enterprise agreement with Bunnings ((WES)) to use its platform across the stores' Australian capital city retail network.

Shaw and Partners believes the deal with one of  Australia's best-known retailers is strong validation of the platform and estimates it could be worth around $5.3m once rolled out and as the Bunnings online presence matures.

The broker does not upgrade forecasts on the basis of the announcement and reiterates the $0.45 price target and a Buy rating.

This report was published on June 9, 2022.

Target price is $0.45 Current Price is $0.22 Difference: $0.23
If Z2U meets the Shaw and Partners target it will return approximately 105% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 2.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 10.48.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 1.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 14.67.

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

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