Australian Broker Call *Extra* Edition – Jul 20, 2022

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

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   ANZ   ARU   BGA   BRG   CLU   DSE   KGN   LYC (3)   MMM   NWC   NWL   PTM   RBL   TOY   TPW   WOW   WTC  

ALU    ALTIUM

Hardware & Equipment – Overnight Price: $29.04

Shaw and Partners – Cessation of coverage

This report was published on July 18, 2022.

Forecast for FY22:

Current consensus EPS estimate is 54.2, implying annual growth of N/A.
Current consensus DPS estimate is 49.9, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 53.6.

Forecast for FY23:

Current consensus EPS estimate is 65.2, implying annual growth of 20.3%.
Current consensus DPS estimate is 56.2, implying a prospective dividend yield of 1.9%.
Current consensus EPS estimate suggests the PER is 44.5.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

ANZ    AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

Banks – Overnight Price: $21.64

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

Goldman Sachs sees ANZ Bank's trading update as positive and considers there are strategic benefits to the Suncorp ((SDUN)) Bank acquisition but notes integration risk.

The broker specifies the risk of ANZ Bank converting Suncorp Bank's 1.2m customers onto the yet to be completed ANZ Plus platform to deliver $265m in synergies.

Earnings forecasts are adjusted by 0.9% and -6.3% for FY22 and FY23, adjusting for the capital raising and the updated earnings.

A Neutral rating is maintained and the price target falls to $27.44 from $29.84

This report was published on July 18, 2022.

Target price is $27.44 Current Price is $21.64 Difference: $5.8
If ANZ meets the Goldman Sachs target it will return approximately 27% (excluding dividends, fees and charges).
Current consensus price target is $27.18, suggesting upside of 25.6%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 144.00 cents and EPS of 213.00 cents.
At the last closing share price the estimated dividend yield is 6.65%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.16.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 208.4, implying annual growth of -4.0%.
Current consensus DPS estimate is 141.3, implying a prospective dividend yield of 6.5%.
Current consensus EPS estimate suggests the PER is 10.4.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 150.00 cents and EPS of 208.00 cents.
At the last closing share price the estimated dividend yield is 6.93%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.40.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 219.7, implying annual growth of 5.4%.
Current consensus DPS estimate is 149.7, implying a prospective dividend yield of 6.9%.
Current consensus EPS estimate suggests the PER is 9.8.

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

ARU    ARAFURA RESOURCES LIMITED

Rare Earth Minerals – Overnight Price: $0.31

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

Bell Potter highlights Arafura Resources has reached a MoU with GE Renewable Energy to supply rare earths from the Nolans Project for the manufacture of on and offshore wind turbines.

A strategic investment in Arafura Resources by GE Renewable is also possible notes the broker.

An expected final decision on the Nolans Project is anticipated by Bell Potter in 2H22 with rare earth projects such as these well supported by the growing demand from the EV and renewable energy sectors.

The broker initiates with a Buy (Speculative) rating and a target price of $0.60.

This report was published on July 12, 2022.

Target price is $0.60 Current Price is $0.31 Difference: $0.29
If ARU meets the Bell Potter target it will return approximately 94% (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 1.25 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 24.80.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 3.28 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 9.45.

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

BGA    BEGA CHEESE LIMITED

Dairy – Overnight Price: $3.28

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

Bell Potter reviews forecasts for Bega Cheese for the increase in farmgate milk prices.

The broker reduces earnings estimates by -9% for FY23 to reflect the higher farmgate milk prices and highlights the downgrade in target price reflects the input pricing hikes reducing the long-term return on capital for Bega Cheese.

Bell Potter notes its own FY23 earnings forecasts are at the lower end of consensus expectations.

Rating is unchanged at Hold and the target reduced to $3.80 from $4.20.

This report was published on July 13, 2022.

Target price is $3.80 Current Price is $3.28 Difference: $0.52
If BGA meets the Bell Potter target it will return approximately 16% (excluding dividends, fees and charges).
Current consensus price target is $3.30, suggesting upside of 0.6%(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 3.35%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.10.

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 3.4%.
Current consensus EPS estimate suggests the PER is 22.8.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 12.00 cents and EPS of 15.50 cents.
At the last closing share price the estimated dividend yield is 3.66%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.16.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 11.3, implying annual growth of -21.5%.
Current consensus DPS estimate is 11.0, implying a prospective dividend yield of 3.4%.
Current consensus EPS estimate suggests the PER is 29.0.

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

BRG    BREVILLE GROUP LIMITED

Household & Personal Products – Overnight Price: $19.82

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

As Europe will be the medium-term growth engine for Breville Group, Wilsons is concerned that looming results from global peers will lead to industry-wide multiple contraction. In anticipation, the broker lowers its target price to $18.50 from $30.00. Market Weight.

Despite this severe cut in target price, the broker's valuation is still set at an around 50% premium to domestic and international peers.

The analyst estimates that around 17% of the company's European footprint (including the UK) has been impacted by declining consumer confidence, due to the Ukraine conflict. Declining demand conditions in North America are also expected to weigh.

This report was published on July 18, 2022.

Target price is $18.50 Current Price is $19.82 Difference: minus $1.32 (current price is over target).
If BRG 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 $26.12, suggesting upside of 31.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 29.90 cents and EPS of 74.80 cents.
At the last closing share price the estimated dividend yield is 1.51%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 76.2, implying annual growth of 15.9%.
Current consensus DPS estimate is 30.0, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 26.0.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 32.90 cents and EPS of 82.10 cents.
At the last closing share price the estimated dividend yield is 1.66%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.14.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 83.9, implying annual growth of 10.1%.
Current consensus DPS estimate is 33.9, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 23.6.

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

CLU    CLUEY LIMITED

Education & Tuition – Overnight Price: $0.54

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

In a general sector report on eCommerce in Australia, Canaccord Genuity sees continued challenges on the horizon, with consumer spending to take a step back next year as property prices are projected to decline.

While keeping a favourable view longer-term, the broker states, for now, companies with debt and high fixed costs are at greater risk given the large negative operating leverage inherent in eCommerce business models.

Cluey is Australia's largest tutoring platform, points out Canaccord Genuity, immediately adding: it also remains one of the fastest-growing companies on the ASX.

Canaccord Genuity is of the view that Cluey will continue its growth, regardless of economic conditions. Buy rating retained. Price target drops to $1.20 from $1.70.

This report was published on July 19, 2022.

Target price is $1.20 Current Price is $0.54 Difference: $0.66
If CLU meets the Canaccord Genuity target it will return approximately 122% (excluding dividends, fees and charges).

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

DSE    DROPSUITE LIMITED

Cloud services – Overnight Price: $0.21

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

Dropsuite's Q2 update once again surprised to the upside with Canaccord Genuity in particular pointing towards a better-than-projected annual recurring revenue (ARR) number inside the report.

The broker points out, Dropsuite provides cloud-based email and website backup, archiving and recovery solutions to SMB-orientated Managed Service Providers (i.e. outsourced IT departments) and continues to take meaningful market share in a growing industry.

Earnings estimates have been lifted. Canaccord Genuity points out customer churn remains low (less than -3%) and total users have now grown to 808,000 with Q2 adding more than 78,000.

Buy rating and 30c target price retained.

This report was published on July 19, 2022.

Target price is $0.30 Current Price is $0.21 Difference: $0.09
If DSE meets the Canaccord Genuity target it will return approximately 43% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of 0.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 105.00.

Forecast for FY23:

Canaccord Genuity 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 210.00.

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

KGN    KOGAN.COM LIMITED

Retailing – Overnight Price: $2.88

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

In a general sector report on eCommerce in Australia, Canaccord Genuity sees continued challenges on the horizon, with consumer spending to take a step back next year as property prices are projected to decline.

While keeping a favourable view longer-term, the broker states, for now, companies with debt and high fixed costs are at greater risk given the large negative operating leverage inherent in eCommerce business models.

As for Kogan, Canaccord Genuity bluntly states management over-invested at the wrong time in the cycle. Forecasts have been pared back.

The rating has been downgraded to Hold from Buy. The new price target is 4c, down from 6c prior. Forecasts have been reduced.

This report was published on July 19, 2022.

Target price is $4.00 Current Price is $2.88 Difference: $1.12
If KGN meets the Canaccord Genuity target it will return approximately 39% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 1.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 240.00.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of 2.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 110.77.

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

LYC    LYNAS RARE EARTHS LIMITED

Rare Earth Minerals – Overnight Price: $7.99

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

Lynas Rare Earths' June quarter report revealed softer production volumes for TREO (terbium) while NdPr proved mostly in-line. Water supply problems in Malaysia have been blamed for the TREO disappointment.

Favourable pricing means Lynas continues to strongly generate cash, the broker remarks. While the company is poised to reveal its longer-term expansion plans, Canaccord Genuity is worried the project in Kalgoorlie might be delayed.

The current Malaysian operating licence expires in March 2023, points out the broker. The risk of a production gap (if Kalgoorlie isn't ready on time) is increasing is one of the conclusions put forward in the report.

Buy rating retained. Target price declines to $12 from $12.50.

This report was published on July 19, 2022.

Target price is $12.00 Current Price is $7.99 Difference: $4.01
If LYC meets the Canaccord Genuity target it will return approximately 50% (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 61.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.10.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of 82.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.74.

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

Database update: Lynas Rare Earths has been upgraded to Buy from Hold, with target price of $12.50.

This report was published on February 25, 2022.

Target price is $12.00 Current Price is $7.99 Difference: $4.01
If LYC meets the Canaccord Genuity target it will return approximately 50% (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 61.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.10.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of 82.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.74.

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

Lynas Rare Earths' announces 4Q22 results with production of Rare Earth Oxides falling below Goldman Sachs' forecasts.

The company realised prices of $79/kg, up 22% for the quarter, compared to the previous quarter, but water shortages at the Malaysian plant continued to impact operations noted the broker.

Revenues of $295m for the 4Q22 fell below consensus estimates of $333m but above Goldman Sachs' forecast of $274m.

The broker adjusts earnings estimates by 2% and -8% for FY22 and FY23, respectively.

A Neutral rating and the target price is reduced to $8.70 from $9.20.

This report was published on July 18, 2022.

Target price is $8.70 Current Price is $7.99 Difference: $0.71
If LYC meets the Goldman Sachs target it will return approximately 9% (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 61.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.10.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 0.00 cents and EPS of 60.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.32.

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

MMM    MARLEY SPOON AG

Consumer Products & Services – Overnight Price: $0.20

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

In a general sector report on eCommerce in Australia, Canaccord Genuity sees continued challenges on the horizon, with consumer spending to take a step back next year as property prices are projected to decline.

While keeping a favourable view longer-term, the broker states, for now, companies with debt and high fixed costs are at greater risk given the large negative operating leverage inherent in eCommerce business models.

Canaccord Genuity points out Marley Spoon AG has been able to increase its prices three times over the past twelve months, showcasing its pricing power when faced with cost increases.

The broker has left its forecasts largely unchanged, but the valuation has shrunk given different market dynamics in 2022. The rating shifts to Speculative Buy from Buy (a downgrade) while the price target halves to 1c from 2c prior.

This report was published on July 19, 2022.

Target price is $0.10 Current Price is $0.20 Difference: minus $0.1 (current price is over target).
If MMM meets the Canaccord Genuity target it will return approximately minus 50% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in December.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 17.34 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 1.15.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 8.36 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 2.39.

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

NWC    NEW WORLD RESOURCES LIMITED

Copper – Overnight Price: $0.04

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

New World Resources has released the Scoping Study for the fully-owned Antler Copper Project in Arizona, USA. Canaccord Genuity notes the log life, high margin metrics with ongoing scope for greater throughput and mine life extensions.

Taking it all in, the broker has now changed its modeling to a fully funded approach with equity dilution included. The result is that the target price declines to 18c from 30c.

Speculative Buy rating retained as the broker remains positive about upcoming drill results.

This report was published on July 19, 2022.

Target price is $0.18 Current Price is $0.04 Difference: $0.14
If NWC meets the Canaccord Genuity target it will return approximately 350% (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

NWL    NETWEALTH GROUP LIMITED

Wealth Management & Investments – Overnight Price: $12.36

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

JP Morgan assesses solid conversion of Netwealth Group's new business pipeline in the 4Q, and maintains its Neutral rating and $13 target price. Rises in earnings forecasts are offset by an increase in the broker's weighted average cost of capital (WACC) to 8% from 7%.

With the interest rate environment beginning to normalise, the broker expects cash margins to improve over the longer term and increases its cash margin assumptions in outer forecast years.

In the near-term, 2H margins will be soft due to weaker funds under administration (FUA) growth, increased opex investment and the company's new cash rate agreement.

This report was published on July 15, 2022.

Target price is $13.00 Current Price is $12.36 Difference: $0.64
If NWL meets the JP Morgan target it will return approximately 5% (excluding dividends, fees and charges).
Current consensus price target is $14.81, suggesting upside of 19.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

JP Morgan forecasts a full year FY22 dividend of 18.00 cents and EPS of 23.00 cents.
At the last closing share price the estimated dividend yield is 1.46%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 53.74.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 23.1, implying annual growth of 2.4%.
Current consensus DPS estimate is 19.3, implying a prospective dividend yield of 1.6%.
Current consensus EPS estimate suggests the PER is 53.5.

Forecast for FY23:

JP Morgan forecasts a full year FY23 dividend of 24.00 cents and EPS of 30.00 cents.
At the last closing share price the estimated dividend yield is 1.94%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 41.20.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 28.3, implying annual growth of 22.5%.
Current consensus DPS estimate is 23.4, implying a prospective dividend yield of 1.9%.
Current consensus EPS estimate suggests the PER is 43.7.

Market Sentiment: 0.5
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: $1.76

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

Bell Potter expresses concern over the ongoing decline of June's FUM for Platinum Asset Management.

The company's FY22 fall in FUM by -22.6% to $18.2bn was worse than Bell Potter's expectations and is -15% below the estimated average of $21.5bn.

The broker sees this shortfall as challenging for revenue comparisons in FY23, unless there is a swift improvement of 30% for FUM over the next 12 months.

Platinum Asset Management performance fees of $6.6m for FY22 were better than the broker's estimate of $4.5m.

On current forecasts, the company's 11.4% dividend yield looks unsustainable says Bell Potter.

A Hold rating is maintained with an unchanged target price of $1.70.

This report was published on July 13, 2022.

Target price is $1.70 Current Price is $1.76 Difference: minus $0.06 (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 $2.06, suggesting upside of 17.3%(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 19.20 cents.
At the last closing share price the estimated dividend yield is 11.36%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.17.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 20.8, implying annual growth of -26.2%.
Current consensus DPS estimate is 19.3, implying a prospective dividend yield of 11.0%.
Current consensus EPS estimate suggests the PER is 8.5.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 14.00 cents and EPS of 13.50 cents.
At the last closing share price the estimated dividend yield is 7.95%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.04.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.5, implying annual growth of -15.9%.
Current consensus DPS estimate is 16.3, implying a prospective dividend yield of 9.3%.
Current consensus EPS estimate suggests the PER is 10.1.

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

RBL    REDBUBBLE LIMITED

Software & Services – Overnight Price: $1.00

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

In a general sector report on eCommerce in Australia, Canaccord Genuity sees continued challenges on the horizon, with consumer spending to take a step back next year as property prices are projected to decline.

While keeping a favourable view longer-term, the broker states, for now, companies with debt and high fixed costs are at greater risk given the large negative operating leverage inherent in eCommerce business models.

Redbubble, the broker believes, currently has the largest expectations of earnings downgrades embedded in its share price. The shares are trading no less than -60% below the company's pre-covid valuation.

Earnings estimates have been culled. Target price drops to $2 from $3. Buy rating retained.

This report was published on July 19, 2022.

Target price is $2.00 Current Price is $1.00 Difference: $1
If RBL meets the Canaccord Genuity target it will return approximately 100% (excluding dividends, fees and charges).
Current consensus price target is $1.50, suggesting upside of 50.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 5.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 17.54.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -7.8, 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 N/A.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 5.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 17.86.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -4.9, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

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

TOY    TOYS 'R' US ANZ LIMITED

Retailing – Overnight Price: $0.07

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

In a general sector report on eCommerce in Australia, Canaccord Genuity sees continued challenges on the horizon, with consumer spending to take a step back next year as property prices are projected to decline.

While keeping a favourable view longer-term, the broker states, for now, companies with debt and high fixed costs are at greater risk given the large negative operating leverage inherent in eCommerce business models.

Toys 'R' Us ANZ has kept its Buy rating while the price target has reset at 14c compared with 16c previously. A higher cost of capital and an inventory-heavy business model weigh on forecasts, which have been reduced.

The broker remains confident Toys 'R' Us ANZ will grab market share in Australia and the UK, also because the starting point is low, supported by brand strength.

This report was published on July 19, 2022.

Target price is $0.14 Current Price is $0.07 Difference: $0.07
If TOY meets the Canaccord Genuity target it will return approximately 100% (excluding dividends, fees and charges).
The company's fiscal year ends in July.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 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 6.36.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 0.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 10.00.

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

TPW    TEMPLE & WEBSTER GROUP LIMITED

Furniture & Renovation – Overnight Price: $3.52

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

In a general sector report on eCommerce in Australia, Canaccord Genuity sees continued challenges on the horizon, with consumer spending to take a step back next year as property prices are projected to decline.

While keeping a favourable view longer-term, the broker states, for now, companies with debt and high fixed costs are at greater risk given the large negative operating leverage inherent in eCommerce business models.

As far as Temple & Webster is concerned, Canaccord Genuity points out the most well-capitalised of its sort in Australia will be facing its toughest comparison in Q1 2023.

Earnings forecasts have been pared back by -1%, -17% and -20% respectively for FY22-FY24. Target price falls to $5.20 from $8.50. Rating remains Buy.

This report was published on July 19, 2022.

Target price is $5.20 Current Price is $3.52 Difference: $1.68
If TPW meets the Canaccord Genuity target it will return approximately 48% (excluding dividends, fees and charges).
Current consensus price target is $5.86, suggesting upside of 66.5%(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 4.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 88.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 5.0, implying annual growth of -56.9%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 70.4.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 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 88.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 5.1, implying annual growth of 2.0%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 69.0.

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

WOW    WOOLWORTHS GROUP LIMITED

Food, Beverages & Tobacco – Overnight Price: $37.04

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

Goldman Sachs believes the proposed acquisition of Shopper Media Group by Woolworths Group's retail media division is in-line with the strategic ambitions of the company.

The broker sees the expansion in Woolworths Group's retail media business as the next meaningful growth division.

A Buy rating (Conviction List) and price target of $40.50.

This report was published on July 18, 2022.

Target price is $40.50 Current Price is $37.04 Difference: $3.46
If WOW meets the Goldman Sachs target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $37.22, suggesting upside of 0.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 96.00 cents and EPS of 124.00 cents.
At the last closing share price the estimated dividend yield is 2.59%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.87.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 122.4, implying annual growth of -25.8%.
Current consensus DPS estimate is 87.8, implying a prospective dividend yield of 2.4%.
Current consensus EPS estimate suggests the PER is 30.3.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 118.00 cents and EPS of 151.00 cents.
At the last closing share price the estimated dividend yield is 3.19%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.53.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 140.2, implying annual growth of 14.5%.
Current consensus DPS estimate is 98.7, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 26.4.

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

WTC    WISETECH GLOBAL LIMITED

Cloud services – Overnight Price: $44.97

Shaw and Partners – Cessation of coverage

This report was published on July 18, 2022.

Forecast for FY22:

Current consensus EPS estimate is 54.8, implying annual growth of 64.7%.
Current consensus DPS estimate is 10.7, implying a prospective dividend yield of 0.2%.
Current consensus EPS estimate suggests the PER is 82.1.

Forecast for FY23:

Current consensus EPS estimate is 72.9, implying annual growth of 33.0%.
Current consensus DPS estimate is 14.4, implying a prospective dividend yield of 0.3%.
Current consensus EPS estimate suggests the PER is 61.7.

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

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