Australian Broker Call *Extra* Edition – Jun 22, 2022

This story features ALTIUM, and other companies. For more info SHARE ANALYSIS: ALU

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)

ALU   ASB   ATA   BGA   BUB   BVS   BXB   COD   COE   CPU   LDX   NIC   OCL   PBH (3)   RDY   RFG   SCP   TCL  

ALU    ALTIUM

Hardware & Equipment – Overnight Price: $25.73

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

Altium has undertaken various initiatives that suggest it is targeting subscriber growth versus revenue growth in the second half. Therefore, Bell Potter acknowledges there is potential risk to revenue and earnings margin guidance in FY22.

On the other hand, the broker points out first half revenue growth was strong and the company narrowed its guidance towards the upper end of the range back in February, knowing these marketing initiatives would be implemented.

Bell Potter continues to forecast FY22 revenue of US$218.5m, slightly ahead of the top end of guidance. Buy rating maintained. Target is reduced  to $34.00 from $41.25.

This report was published on June 20, 2022.

Target price is $34.00 Current Price is $25.73 Difference: $8.27
If ALU meets the Bell Potter target it will return approximately 32% (excluding dividends, fees and charges).
Current consensus price target is $31.73, suggesting upside of 23.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 59.11 cents and EPS of 49.90 cents.
At the last closing share price the estimated dividend yield is 2.30%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 51.57.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 53.7, implying annual growth of N/A.
Current consensus DPS estimate is 49.4, implying a prospective dividend yield of 1.9%.
Current consensus EPS estimate suggests the PER is 47.9.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 64.61 cents and EPS of 63.64 cents.
At the last closing share price the estimated dividend yield is 2.51%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 40.43.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 64.6, implying annual growth of 20.3%.
Current consensus DPS estimate is 55.7, implying a prospective dividend yield of 2.2%.
Current consensus EPS estimate suggests the PER is 39.8.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.3
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: $1.85

Shaw and Partners – Cessation of coverage

This report was published on June 20, 2022.

Forecast for FY22:

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 4.5%.
Current consensus EPS estimate suggests the PER is 9.3.

Forecast for FY23:

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 4.8%.
Current consensus EPS estimate suggests the PER is 11.1.

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: $0.68

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

Since the IPO, Atturra has made two acquisitions that Shaw and Partners notes are both strategic and geographically relevant for sector/vendor expansion.

Furthermore, the broker expects the company will remain active in industry consolidation with further accretion likely. The stock is one of the broker's key high-conviction picks and is now trading below the IPO valuation following a strong performance since listing.

Buy rating and $1.03 target maintained.

This report was published on June 21, 2022.

Target price is $1.03 Current Price is $0.68 Difference: $0.35
If ATA meets the Shaw and Partners target it will return approximately 51% (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 14.78.

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 0.88%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.72.

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

BGA    BEGA CHEESE LIMITED

Dairy – Overnight Price: $3.93

Bell Potter rates ((BGA)) as Downgrade to Hold from Buy (3) –

Bell Potter reviews the drivers of the outlook and becomes more cautious. Milk production in south-east Australia has contracted, with Murray catchment production down -6.3% in the year to April.

Farmgate pricing has lifted materially and the broker allows for just modest price recovery in the Bega Cheese branded portfolio. The net effect of the review is a downgrade to net profit estimates of -30% in FY23 and -26% in FY24.

Rating is downgraded to Hold from Buy and the target reduced to $4.20 from $5.90.

This report was published on June 20, 2022.

Target price is $4.20 Current Price is $3.93 Difference: $0.27
If BGA meets the Bell Potter target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $4.73, suggesting upside of 20.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 11.00 cents and EPS of 14.20 cents.
At the last closing share price the estimated dividend yield is 2.80%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.68.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 14.4, implying annual growth of -47.3%.
Current consensus DPS estimate is 11.0, implying a prospective dividend yield of 2.8%.
Current consensus EPS estimate suggests the PER is 27.3.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 12.00 cents and EPS of 17.00 cents.
At the last closing share price the estimated dividend yield is 3.05%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.12.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 21.1, implying annual growth of 46.5%.
Current consensus DPS estimate is 12.0, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 18.6.

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

BUB    BUBS AUSTRALIA LIMITED

Dairy – Overnight Price: $0.61

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

Updated FY22 guidance has gross revenue forecast to exceed $100m and underlying EBITDA to be at least double the first half. At first glance, the guidance is softer than Bell Potter previously estimated and, therefore, probably includes some conservatism.

In recent weeks Bubs Australia has reached agreements with Walmart, Kroger and Albertsons for additional deliveries of infant formula product into the USA.

While upgrading net revenue forecasts by 6-10%, the broker downgrades margin assumptions, resulting in EBITDA downgrades of -19%. A Speculative Hold rating is maintained. Target is $0.75.

This report was published on June 17, 2022.

Target price is $0.75 Current Price is $0.61 Difference: $0.14
If BUB meets the Bell Potter target it will return approximately 23% (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 0.00 cents.

Forecast for FY23:

Bell Potter forecasts a full year FY23 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 610.00.

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

BVS    BRAVURA SOLUTIONS LIMITED

Wealth Management & Investments – Overnight Price: $1.46

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

Goldman Sachs retains its Neutral rating for Bravura Solutions due to uncertainty regarding labour inflation and its impact on profit margins. Moreover, there's considered to be little clarity on how the new deal pipeline will convert over the next 12 months.

The broker also points out higher costs ex-wages could present further downside risk to its below-consensus estimates. It's thought further consensus downgrades may be needed before the share price can re-rate.

The target falls to $1.75 from $1.90.

This report was published on June 21, 2022.

Target price is $1.75 Current Price is $1.46 Difference: $0.29
If BVS meets the Goldman Sachs target it will return approximately 20% (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 7.00 cents and EPS of 10.00 cents.
At the last closing share price the estimated dividend yield is 4.79%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.60.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 7.00 cents and EPS of 11.00 cents.
At the last closing share price the estimated dividend yield is 4.79%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.27.

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

BXB    BRAMBLES LIMITED

Transportation & Logistics – Overnight Price: $10.59

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

Updating its US pallets cost tracker for May, Jarden assesses the implications for Brambles are mixed. Lumber price declines have accelerated, down -15% over April/May.

The broker believes this could increase access to lumber for whitewood and recycled wood alternatives and potentially drive down industry pallet prices.

Meanwhile, transport freight rates are rising, up 13.2% in May. All up, the broker assesses inflation headwinds are moderating but this could have mixed implications for competition and pallet repair/return intensity. Overweight rating and $11.50 target maintained.

This report was published on June 20, 2022.

Target price is $11.50 Current Price is $10.59 Difference: $0.91
If BXB meets the Jarden target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $12.11, suggesting upside of 14.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 37.94 cents and EPS of 54.71 cents.
At the last closing share price the estimated dividend yield is 3.58%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.36.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 60.8, implying annual growth of N/A.
Current consensus DPS estimate is 31.3, implying a prospective dividend yield of 3.0%.
Current consensus EPS estimate suggests the PER is 17.4.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 38.90 cents and EPS of 56.08 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 18.88.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 65.2, implying annual growth of 7.2%.
Current consensus DPS estimate is 34.1, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 16.2.

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

COD    CODA MINERALS LIMITED

Mining – Overnight Price: $0.31

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

Coda Minerals has positive results from assays at drill hole EBD7 and has recently announced a major increase in the lateral extent of known mineralisation at Emmie.

While drilling results have been positive, this is not enough to justify continued drilling at the Emmie IOCG system without the support of further geophysical surveys to refine the targets, Shaw and Partners contends.

The company is commencing geophysical surveys, expected to take three months, before a new drill plan will be outlined. Target is reduced to $0.90 from $2.50. Buy rating retained.

This report was published on June 21, 2022.

Target price is $0.90 Current Price is $0.31 Difference: $0.59
If COD meets the Shaw and Partners target it will return approximately 190% (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 3.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 7.95.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 3.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 7.95.

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: $0.32

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

Cooper Energy will acquire  the Orbost gas processing plant for $270-330m. The company will raise $244m in equity via an institutional placement and entitlement offer. A new $400m revolving corporate debt facility to refinance the existing syndicate debt facility will also be undertaken.

Bell Potter observes the arrangements clear a number of capital funding uncertainties for the company which now must work to improve the processing rates at the plant and fully leverage its Sole asset while delivering into current record-high spot gas markets.

Bell Potter retains a Buy rating and $0.33 target.

This report was published on June 20, 2022.

Target price is $0.33 Current Price is $0.32 Difference: $0.01
If COE meets the Bell Potter target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $0.29, suggesting downside of -8.8%(ex-dividends)
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 0.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 160.00.

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:

Bell Potter forecasts a full year FY23 dividend of 0.20 cents and EPS of 2.00 cents.
At the last closing share price the estimated dividend yield is 0.63%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.00.

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 3.0.

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

CPU    COMPUTERSHARE LIMITED

Diversified Financials – Overnight Price: $23.92

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

Jarden assesses Computershare is the most leveraged listed Australian financial stock to rising risk-free rates, and placed to benefit from the outlook. The broker estimates more than $100m in upside to consensus margin income forecasts over FY23 and FY24.

This should counter the softer backdrop for transaction revenue and higher operating costs. Jarden also expects the company can de-gear more rapidly, with net debt/EBITDA falling from 2.1x at the first half to be net cash by FY26.

Overweight rating maintained. Target rises to $26.25 from $24.00.

This report was published on June 21, 2022.

Target price is $26.25 Current Price is $23.92 Difference: $2.33
If CPU meets the Jarden target it will return approximately 10% (excluding dividends, fees and charges).
Current consensus price target is $26.47, suggesting upside of 10.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 65.98 cents and EPS of 78.90 cents.
At the last closing share price the estimated dividend yield is 2.76%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.32.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 81.5, implying annual growth of N/A.
Current consensus DPS estimate is 62.3, implying a prospective dividend yield of 2.6%.
Current consensus EPS estimate suggests the PER is 29.3.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 77.66 cents and EPS of 115.74 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 20.67.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 117.6, implying annual growth of 44.3%.
Current consensus DPS estimate is 76.8, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 20.3.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

LDX    LUMOS DIAGNOSTICS HOLDINGS LIMITED

Medical Equipment & Devices – Overnight Price: $0.15

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

Lumos Diagnostics has been successful in cutting costs in the US, resulting in scaled capacity and personnel and targeting monthly cash burn of less than -US$1m by the end of FY22.

An institutional entitlement offer has been completed, raising $8m. The US FDA is also expected to provide an indicative clearance decision within 58 days after the filing of its FebriDX asset for approval on May 9.

Bell Potter maintains a Speculative Buy rating and reduces the target to $0.28 from $0.75. The valuation is driven by discounted cash flow, upwardly adjusted cost of capital as well as the dilutive effect of the new shares, the broker explains.

This report was published on June 17, 2022.

Target price is $0.28 Current Price is $0.15 Difference: $0.13
If LDX meets the Bell Potter target it will return approximately 87% (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 8.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 1.81.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 5.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 2.59.

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

NIC    NICKEL INDUSTRIES LIMITED

Nickel – Overnight Price: $1.06

Shaw and Partners – Cessation of coverage

This report was published on June 20, 2022.

Forecast for FY22:

Current consensus EPS estimate is 13.6, implying annual growth of N/A.
Current consensus DPS estimate is 6.5, implying a prospective dividend yield of 6.1%.
Current consensus EPS estimate suggests the PER is 7.8.

Forecast for FY23:

Current consensus EPS estimate is 16.9, implying annual growth of 24.3%.
Current consensus DPS estimate is 7.9, implying a prospective dividend yield of 7.5%.
Current consensus EPS estimate suggests the PER is 6.3.

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

OCL    OBJECTIVE CORPORATION LIMITED

IT & Support – Overnight Price: $13.52

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

Goldman Sachs feels Objective is sending positive signals to the market by announcing up to 10% of share on issue will be purchased via an on market share buyback.

Having said that, the broker (based on little actual buying during the prior buyback) suspects there will be no material reduction in shares on issue, as at least $30m cash will be retained on the balance sheet. It's thought this money will be applied to an acquisition in the US.

The analyst notes a strong company history of buying back shares prior to share price outperformance. The Neutral rating and $19.05 target price are maintained.

This report was published on June 21, 2022.

Target price is $19.05 Current Price is $13.52 Difference: $5.53
If OCL meets the Goldman Sachs target it will return approximately 41% (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 11.20 cents and EPS of 20.30 cents.
At the last closing share price the estimated dividend yield is 0.83%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 66.60.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 14.90 cents and EPS of 27.10 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 49.89.

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

PBH    POINTSBET HOLDINGS LIMITED

Gaming – Overnight Price: $2.78

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

SIG Sports Investments Corp, a member of the Susquehanna International Group of Companies, will become the largest shareholder in PointsBet Holdings following a $94m placement at $2.34/share.

Goldman Sachs sees strategic merit in the alliance which includes an agreement to potentially accelerate the company's technology capability.

Separately, PointsBet Holdings announced a pro-rata deferred bonus equity option issuance to eligible shareholders. This option will potentially raise around $150m over the next two years.

The broker remains Buy-rated and leaves its $5.78 target price unchanged.

This report was published on June 21, 2022.

Target price is $5.78 Current Price is $2.78 Difference: $3
If PBH meets the Goldman Sachs target it will return approximately 108% (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 0.00 cents and EPS of minus 90.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 3.09.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 81.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 3.43.

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

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Jarden rates ((PBH)) as Buy (1) –

PointsBet Holdings has announced a $94.2m capital raising with strategic investor SIG Sports at $2.43 a share, comprising 12.8% of outstanding shares. Bonus equity options have also been announced for shareholders, with the potential to raise up to $150m over the next two years.

Meanwhile, the European business that was acquired in April 2021 has entered into an exploratory agreement with Nellie Analytics for an exclusive sports analytical services offering to PointsBet.

Jarden assesses the capital raising is taking place at a particularly challenging time for markets and follows a sharp downturn in the share price. Still, additional funding certainty was needed. Buy rating retained. Target is reduced to $3.81 from $8.10.

This report was published on June 21, 2022.

Target price is $3.81 Current Price is $2.78 Difference: $1.03
If PBH meets the Jarden target it will return approximately 37% (excluding dividends, fees and charges).
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 minus 90.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 3.08.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 77.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 3.57.

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

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JP Morgan rates ((PBH)) as Underweight (5) –

Following the rejection by PointsBet Holdings of a bid by News Corp ((NWS)), the company has announced SIG Sports will become a 'strategic investor' and largest shareholder. This follows a $94m placement at $2.34/share.

The company also signed a nine-month temporary agreement with Nellie Analytics (part of the wider Susquehanna Group owner of SIG Sports) to increase its analytical capabilities.

Neither of these announcements sways JP Morgan from its Underweight rating as challenges remain in the US and regulatory change in Australia is a potential headwind. The $1.95 target price is unchanged.

This report was published on June 21, 2022.

Target price is $1.95 Current Price is $2.78 Difference: minus $0.83 (current price is over target).
If PBH meets the JP Morgan target it will return approximately minus 30% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY22:

JP Morgan forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 74.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 3.76.

Forecast for FY23:

JP Morgan forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 82.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 3.39.

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

RDY    READYTECH HOLDINGS LIMITED

Software & Services – Overnight Price: $2.71

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

ReadyTech will acquire IT Vision, a software provider to Australian local government, for up to $54.6m. The cash portion of the payment will be funded by debt.

Jarden considers the transaction "strategically sound" as it expands the local government market share to 50-55% and provides cross selling opportunities with the Open Office business.

The broker increases revenue forecasts by 15% for FY23 and FY24 while margin forecasts declined by -260 basis points for FY23 and -210 basis points for FY24, stemming from the mix-shift and the addition of the lower-margin IT Vision business.

Overweight retained. Target is lowered to $4.02 from $4.37.

This report was published on June 17, 2022.

Target price is $4.02 Current Price is $2.71 Difference: $1.31
If RDY meets the Jarden target it will return approximately 48% (excluding dividends, fees and charges).
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 13.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.93.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 0.00 cents and EPS of 16.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.04.

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) –

Retail Food has guided to FY22 EBITDA of around $21.4m, largely in line with expectations. The trading update showed key operating metrics strengthened throughout the second half as the business overcame pandemic-related disruptions.

Regulatory uncertainty is the key issue, Shaw and Partners asserts, yet the stock is performing well and is in a stronger regulatory position than is largely appreciated by the market.

The broker reduces cash flow forecasts in line with commentary around expected net debt levels and pushes back expectations for a resumption of dividends by six months. Buy rating maintained. Target is $0.12.

This report was published on June 21, 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 0.20 cents and EPS of 0.80 cents.
At the last closing share price the estimated dividend yield is 4.00%.
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

SCP    SHOPPING CENTRES AUSTRALASIA PROPERTY GROUP RE LIMITED

REITs – Overnight Price: $2.74

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

Moelis believes Shopping Centres Australasia Property is a highly defensive exposure because of the non-discretionary nature of its retail assets. Its income stream is also well-hedged to inflation.

The company has announced an agreement to acquire five neighbourhood shopping centres for $180m which implies an average fully let yield of 6%.

Gearing is expected to increase to 30.5% at the end of July, from 28.5%, and move back to the lower end of the 30-40% target range. This includes the contribution from the dividend reinvestment plan, which has been 50% underwritten.

Moelis considers the stock attractively priced and upgrades to Buy from Hold. Target is reduced to $2.97 from $3.20.

This report was published on June 20, 2022.

Target price is $2.97 Current Price is $2.74 Difference: $0.23
If SCP meets the Moelis target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $3.01, suggesting upside of 9.9%(ex-dividends)
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 17.50 cents.
At the last closing share price the estimated dividend yield is 5.55%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.66.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.0, implying annual growth of -60.4%.
Current consensus DPS estimate is 15.1, implying a prospective dividend yield of 5.5%.
Current consensus EPS estimate suggests the PER is 16.1.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 15.40 cents and EPS of 18.00 cents.
At the last closing share price the estimated dividend yield is 5.62%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.22.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.0, implying annual growth of 5.9%.
Current consensus DPS estimate is 16.1, implying a prospective dividend yield of 5.9%.
Current consensus EPS estimate suggests the PER is 15.2.

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

TCL    TRANSURBAN GROUP LIMITED

Infrastructure & Utilities – Overnight Price: $13.95

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

Transurban Group has announced a second half distribution of $0.26, in line with expectations. This includes around 2.5c in capital release from the increased stake in WestConnex. Transurban has indicated it expects to receive around $2.3bn in capital releases over FY22-25.

Jarden's forecast dividend yield of 4.5% offers a 0.4% spread to the 10-year Australian government bond yield, with the historical average since 2017 sitting at 3.2%. Incorporating potential capital releases as distributions in FY23 would mean the dividend yield increases to 4.9% and offers a 0.8% spread to the 10-year Australian government bond yield.

The broker maintains an Underweight rating, noting the main downside risks are increases in interest rates, development risk at the West Gate tunnel and a possible equity raising for future acquisitions. Upside risks include a stronger-than-expected rebound in traffic volumes and higher tariff adjustments. Target is reduced to $13.20 from $13.40.

This report was published on June 20, 2022.

Target price is $13.20 Current Price is $13.95 Difference: minus $0.75 (current price is over target).
If TCL meets the Jarden target it will return approximately minus 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $14.54, suggesting upside of 4.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 40.80 cents and EPS of 7.80 cents.
At the last closing share price the estimated dividend yield is 2.92%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 178.85.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 9.1, implying annual growth of N/A.
Current consensus DPS estimate is 39.7, implying a prospective dividend yield of 2.8%.
Current consensus EPS estimate suggests the PER is 153.3.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 61.10 cents and EPS of 23.30 cents.
At the last closing share price the estimated dividend yield is 4.38%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 59.87.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 26.3, implying annual growth of 189.0%.
Current consensus DPS estimate is 60.7, implying a prospective dividend yield of 4.4%.
Current consensus EPS estimate suggests the PER is 53.0.

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

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