Australian Broker Call *Extra* Edition – Jul 26, 2022

This story features AIC MINES LIMITED, and other companies. For more info SHARE ANALYSIS: A1M

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)

A1M   ANZ   BCB   BHP   BPT   COE   COH   CTD   CWN   JBH   JDO   JHG   JHX   JIN   LIC   NST   SGR   SLA   SUN   WHC   WZR  

A1M    AIC MINES LIMITED

Gold & Silver – Overnight Price: $0.45

Shaw and Partners rates ((A1M)) as Buy (1) –

AIC Mines reported the June quarter production results and the Eloise mine continued to prove operational performance with copper production up 8%, with improved copper grades, explains Shaw and Partners.

Overall, the broker considers the progress at Eloise encouraging but noted the mine must continue to increase the copper production rate in the September quarter to meet FY23 copper targets of 12,500t.

Cash flow declined during the quarter as lower copper prices coincided with ongoing investment spending at Eloise.

The Buy rating and target price of $0.73 are retained.

This report was published on July 21, 2022.

Target price is $0.73 Current Price is $0.45 Difference: $0.28
If A1M meets the Shaw and Partners target it will return approximately 62% (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 12.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 3.66.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of 7.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.77.

Market Sentiment: 1.0
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: $22.62

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

Jarden believes ANZ Bank's purchase of Suncorp Bank at a likely hefty 20% to 40% premium should only claw back four years of lost market share, but the broker concedes the purchase is a good strategic fit, offering scale in Queensland.

The broker notes that synergy assumptions are long-dated and considers them to be conservative.

FY23 EPS forecasts are downgraded -5% to reflect the higher share count and likely about-face on buybacks.

Underweight rating retained, the broker expecting limited benefits and continued near-term challenges. Target price falls to $23 from $24.50.

This report was published on July 19, 2022.

Target price is $23.00 Current Price is $22.62 Difference: $0.38
If ANZ meets the Jarden target it will return approximately 2% (excluding dividends, fees and charges).
Current consensus price target is $27.04, suggesting upside of 19.5%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 144.00 cents and EPS of 209.20 cents.
At the last closing share price the estimated dividend yield is 6.37%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.81.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 208.0, implying annual growth of -3.4%.
Current consensus DPS estimate is 142.0, implying a prospective dividend yield of 6.3%.
Current consensus EPS estimate suggests the PER is 10.9.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 146.00 cents and EPS of 213.80 cents.
At the last closing share price the estimated dividend yield is 6.45%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.58.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 218.0, implying annual growth of 4.8%.
Current consensus DPS estimate is 149.7, implying a prospective dividend yield of 6.6%.
Current consensus EPS estimate suggests the PER is 10.4.

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

BCB    BOWEN COKING COAL LIMITED

Coal – Overnight Price: $0.31

Shaw and Partners rates ((BCB)) as Initiation of coverage with Buy (1) –

Shaw and Partners initiates coverage of Bowen Coking Coal with a Buy rating.

The company has a number of assets in the Bowen Basin in Queensland and reported the first shipment of metallurgical coal from its Bluff Project which has potential production of 4-5Mtpa in the next 2-3 years, explains the broker.

Shaw analysts believe Bowen Coking Coal has a very experienced management team and is well-positioned to benefit from elevated metallurgical coal prices, due to supply constraints over the next few years.

The recent sell off in the share price from the increase in the Queensland coal royalties is more than discounted, Shaw and Partners points out.

The Buy rating comes with a 51c share price target.

This report was published on July 21, 2022.

Target price is $0.51 Current Price is $0.31 Difference: $0.2
If BCB meets the Shaw and Partners target it will return approximately 65% (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 0.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 44.29.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 EPS of 11.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 2.72.

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

BHP    BHP GROUP LIMITED

Bulks – Overnight Price: $37.35

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

Goldman Sachs approves of the 4Q22 BHP Group trading results with the increase in iron production and improved copper grades at Escondida, offsetting the fall of -16% in production of met coal due to wet weather.

Earnings forecasts are lowered -4% and -7% for FY22 and FY23, respectively on lower production and iron pricing.

BHP Group continues to trade at a premium to its global peers which Goldman Sachs considers as justified given the company's robust margins, the strength of operating performance at Pilbara, as well as improvements in copper.

Goldman Sachs reiterates a Buy rating and the price target is reduced by -5% to $40.80 from $42.90.

This report was published on July 19, 2022.

Target price is $40.80 Current Price is $37.35 Difference: $3.45
If BHP meets the Goldman Sachs target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $42.36, suggesting upside of 13.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 441.95 cents and EPS of 612.36 cents.
At the last closing share price the estimated dividend yield is 11.83%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.10.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 614.5, implying annual growth of N/A.
Current consensus DPS estimate is 558.2, implying a prospective dividend yield of 14.9%.
Current consensus EPS estimate suggests the PER is 6.1.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 259.08 cents and EPS of 358.83 cents.
At the last closing share price the estimated dividend yield is 6.94%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.41.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 551.9, implying annual growth of -10.2%.
Current consensus DPS estimate is 406.6, implying a prospective dividend yield of 10.9%.
Current consensus EPS estimate suggests the PER is 6.8.

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

BPT    BEACH ENERGY LIMITED

Crude Oil – Overnight Price: $1.73

Jarden rates ((BPT)) as Buy (1) –

Beach Energy's trading update was better than Jarden's expectations with the 10% lift in 4Q22 revenue beating estimates due to higher oil prices and a 4% increase in gas prices.

The company showed good cost controls, suggesting the FY22 results will be at the lower end of guidance, relieving concerns over inflation pressures, suggests the broker.

Operationally, Beach Energy production volumes were in line for 4Q22 with the Otway plant showing an 83% increase in output.

Jarden increases FY22 earnings estimates and valuations from higher quarterly data, stronger balance with higher cash levels. The dividend per share forecast increases to 3c from 1c in the 2H22.

A Buy rating is retained and the price target rises to $2.10 from $2.05.

This report was published on July 20, 2022.

Target price is $2.10 Current Price is $1.73 Difference: $0.37
If BPT meets the Jarden target it will return approximately 21% (excluding dividends, fees and charges).
Current consensus price target is $1.98, suggesting upside of 14.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 4.00 cents and EPS of 24.80 cents.
At the last closing share price the estimated dividend yield is 2.31%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.98.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 25.0, implying annual growth of 80.1%.
Current consensus DPS estimate is 2.3, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 6.9.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 4.00 cents and EPS of 27.90 cents.
At the last closing share price the estimated dividend yield is 2.31%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.20.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 27.4, implying annual growth of 9.6%.
Current consensus DPS estimate is 3.0, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 6.3.

Market Sentiment: 0.5
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: $0.22

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

Cooper Energy pre-announced 4Q22 results up until June 6 which showed a slower increase in production at The Orbust Plant, explains Jarden.

The broker assesses the company benefited from lower payments to the APA Group ((APA)), which offset the moderation in increase to daily production.

Cooper Energy's balance sheet improved post the $178m equity raise and the company had net cash of $91.3m at the end of FY22.

Overweight rating maintained. Target is reduced to $0.29 from $0.30.

This report was published on July 21, 2022.

Target price is $0.29 Current Price is $0.22 Difference: $0.07
If COE meets the Jarden target it will return approximately 32% (excluding dividends, fees and charges).
Current consensus price target is $0.28, suggesting upside of 28.2%(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 0.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 110.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -10.4, 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:

Jarden forecasts a full year FY23 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 110.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 12.3, 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 1.8.

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

COH    COCHLEAR LIMITED

Medical Equipment & Devices – Overnight Price: $210.56

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

In reviewing Cochlear, Jarden undertook a global survey of 54 cochlear implant specialists in the US, Europe and India in early July.

The study showed a number of positive trends with better volumes in 1H22 compared to the previous six months and continuing market share strength with Cochlear rated 1st or 2nd across 96% of the respondents.

Earnings forecasts rise 2.4% and 1.2% for FY22 and FY23, respectively, and the reduction in the price target to $224.74 from $250.36 reflects higher cost of capital estimates.

Overweight rating retained.

This report was published on July 20, 2022.

Target price is $224.74 Current Price is $210.56 Difference: $14.18
If COH meets the Jarden target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $221.42, suggesting upside of 5.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 318.30 cents and EPS of 438.80 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 47.99.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 425.5, implying annual growth of -14.3%.
Current consensus DPS estimate is 291.2, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 49.5.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 314.20 cents and EPS of 486.80 cents.
At the last closing share price the estimated dividend yield is 1.49%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 43.25.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 475.5, implying annual growth of 11.8%.
Current consensus DPS estimate is 327.8, implying a prospective dividend yield of 1.6%.
Current consensus EPS estimate suggests the PER is 44.3.

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

CTD    CORPORATE TRAVEL MANAGEMENT LIMITED

Travel, Leisure & Tourism – Overnight Price: $18.77

JP Morgan rates ((CTD)) as Upgrade to Overweight from Neutral (1) –

JP Morgan believes downside risk for FY23 earnings has largely been factored-in to Corporate Travel Management's share price (-25%  fall since early May), and upgrades its rating to Overweight from Neutral. The $25 target price is unchanged.

The analyst feels the company can outperform peers in the next phase of the travel recovery, and expects the industry can recover to pre-covid activity levels through FY24, with capacity constraints resolving over FY23.

The broker points out current recovery trends relatively favour Corporate Travel Management, with its business skewed towards SMEs, around 62% exposure to domestic travel and leverage to government accounts.

This report was published on July 21, 2022.

Target price is $25.00 Current Price is $18.77 Difference: $6.23
If CTD meets the JP Morgan target it will return approximately 33% (excluding dividends, fees and charges).
Current consensus price target is $26.47, suggesting upside of 41.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

JP Morgan forecasts a full year FY22 dividend of 5.00 cents and EPS of 16.00 cents.
At the last closing share price the estimated dividend yield is 0.27%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 117.31.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 12.2, implying annual growth of N/A.
Current consensus DPS estimate is 4.4, implying a prospective dividend yield of 0.2%.
Current consensus EPS estimate suggests the PER is 153.9.

Forecast for FY23:

JP Morgan forecasts a full year FY23 dividend of 29.00 cents and EPS of 66.00 cents.
At the last closing share price the estimated dividend yield is 1.55%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.44.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 81.9, implying annual growth of 571.3%.
Current consensus DPS estimate is 29.9, implying a prospective dividend yield of 1.6%.
Current consensus EPS estimate suggests the PER is 22.9.

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

CWN    CROWN RESORTS LIMITED

Gaming – Overnight Price: $13.09

Goldman Sachs – Cessation of coverage

This report was published on July 25, 2022.

Forecast for FY22:

Current consensus EPS estimate is -20.1, implying annual growth of N/A.
Current consensus DPS estimate is 6.7, implying a prospective dividend yield of 0.5%.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY23:

Current consensus EPS estimate is 34.8, implying annual growth of N/A.
Current consensus DPS estimate is 45.0, implying a prospective dividend yield of 3.4%.
Current consensus EPS estimate suggests the PER is 37.6.

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

JBH    JB HI-FI LIMITED

Consumer Electronics – Overnight Price: $43.57

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

.JB Hi-Fi announced preliminary sales and earnings ahead of the August 15 FY22 results, notes Goldman Sachs.

The broker points out that sales were in-line but the company's robust margins beat in the 2H22.

Looking ahead, the analyst expects the impacts of inflation and increased competition to have an impact in the second half of 2022 and will be looking for guidance from JB Hi-Fi on the outlook for FY23, alongside details regarding working capital uses for investing in future growth.

A Sell rating is maintained and the target price is raised to $34.90 from $32.00.

This report was published on July 19, 2022.

Target price is $34.90 Current Price is $43.57 Difference: minus $8.67 (current price is over target).
If JBH meets the Goldman Sachs target it will return approximately minus 20% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $46.69, suggesting upside of 7.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 312.00 cents and EPS of 477.50 cents.
At the last closing share price the estimated dividend yield is 7.16%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.12.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 478.4, implying annual growth of 8.5%.
Current consensus DPS estimate is 316.8, implying a prospective dividend yield of 7.3%.
Current consensus EPS estimate suggests the PER is 9.1.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 209.00 cents and EPS of 320.40 cents.
At the last closing share price the estimated dividend yield is 4.80%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.60.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 366.2, implying annual growth of -23.5%.
Current consensus DPS estimate is 242.8, implying a prospective dividend yield of 5.6%.
Current consensus EPS estimate suggests the PER is 11.9.

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

JDO    JUDO CAPITAL HOLDINGS LIMITED

Business & Consumer Credit – Overnight Price: $1.30

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

Goldman Sachs' conducts some minor changes to the earnings forecasts of Judo Capital for the half-yearly results update.

The broker doesn't see the changes as impacting on the rating or price target, although the analyst points out risks to earnings from possible business uncertainty, regulatory changes, possible software outages and increased competition.

Goldman Sachs has a Buy rating and a $2.05 price target.

This report was published on July 19, 2022.

Target price is $2.05 Current Price is $1.30 Difference: $0.75
If JDO meets the Goldman Sachs target it will return approximately 58% (excluding dividends, fees and charges).
Current consensus price target is $2.01, suggesting upside of 54.8%(ex-dividends)
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 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 130.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 0.4, implying annual growth of -84.7%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 325.0.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 0.00 cents and EPS of 8.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.25.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 5.0, implying annual growth of 1150.0%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
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

JHG    JANUS HENDERSON GROUP PLC

Wealth Management & Investments – Overnight Price: $35.40

JP Morgan rates ((JHG)) as Downgrade to Underweight from Neutral (5) –

JP Morgan downgrades its rating for Janus Henderson to Underweight from Neutral as outflows increase due to bad financial markets and weaker performance. The fund manager's growth-invested bias has not suited the times, notes the analyst.

The broker points out asset classes often out/underperform for many years, so current growth headwinds may persist. It's felt dividend payments may be at risk (unlike for other fund managers) due to less near-term expense flexibility given ‘transformational’ investments.

JP Morgan suggest the current investment underperformance impacts current funds under management (FUM) and the sales pitch for new money. It's believed negative US performance fees will get modestly worse in coming quarters and persist through 2023.

The target price falls to $18 from $27.

This report was published on July 19, 2022.

Target price is $18.00 Current Price is $35.40 Difference: minus $17.4 (current price is over target).
If JHG meets the JP Morgan target it will return approximately minus 49% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $42.48, suggesting upside of 20.0%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY22:

JP Morgan forecasts a full year FY22 dividend of 216.82 cents and EPS of 329.73 cents.
At the last closing share price the estimated dividend yield is 6.12%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.74.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 447.9, implying annual growth of N/A.
Current consensus DPS estimate is 226.2, implying a prospective dividend yield of 6.4%.
Current consensus EPS estimate suggests the PER is 7.9.

Forecast for FY23:

JP Morgan forecasts a full year FY23 dividend of 216.13 cents and EPS of 257.69 cents.
At the last closing share price the estimated dividend yield is 6.11%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.74.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 443.7, implying annual growth of -0.9%.
Current consensus DPS estimate is 260.5, implying a prospective dividend yield of 7.4%.
Current consensus EPS estimate suggests the PER is 8.0.

This company reports in USD. 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

JHX    JAMES HARDIE INDUSTRIES PLC

Building Products & Services – Overnight Price: $35.34

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

Jarden considers the update of US housing data which showed signs of slowing in the repair and renovations market in light of James Hardie Industries.

The broker points out the moderation in new housing starts in the US may not be as bad as anticipated and James Hardie Industries' fibre cement product will be favoured for its zero-waste and low-emission qualities.

The European markets may be impacted by gas supply issues from Russia notes the analysts but the Euro zone generated only 13.5% to FY22 revenues.

James Hardie Industries is the preferred building materials stock in the sector and Jarden points out FY24 earnings forecasts are around -17% below consensus.

The stock remains an Overweight with a $42.50 price target.

This report was published on July 20, 2022.

Target price is $42.50 Current Price is $35.34 Difference: $7.16
If JHX meets the Jarden target it will return approximately 20% (excluding dividends, fees and charges).
Current consensus price target is $49.71, suggesting upside of 40.7%(ex-dividends)
The company's fiscal year ends in March.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 142.70 cents and EPS of 234.14 cents.
At the last closing share price the estimated dividend yield is 4.04%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.09.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 245.3, implying annual growth of N/A.
Current consensus DPS estimate is 125.8, implying a prospective dividend yield of 3.6%.
Current consensus EPS estimate suggests the PER is 14.4.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 123.30 cents and EPS of 204.63 cents.
At the last closing share price the estimated dividend yield is 3.49%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.27.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 263.2, implying annual growth of 7.3%.
Current consensus DPS estimate is 138.3, implying a prospective dividend yield of 3.9%.
Current consensus EPS estimate suggests the PER is 13.4.

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

JIN    JUMBO INTERACTIVE LIMITED

Gaming – Overnight Price: $13.14

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

Goldman Sachs conducted an overview of the Australian lottery sector and Jumbo Interactive.

The analysts point out more large jackpots in 2H22; strength in Powerball; OzLotto remaining flat and Jumbo Interactive's app WAU is around 40,000 per month compared to the peak of 60,000 in September 2019.

Goldman Sachs lowers earnings forecasts by an average of -7% for FY22 and FY23 from expected higher costs and lower margins.

The price target is lowered to $16.70 from $17.33. Neutral rating retained until more details emerge at the August 26 full year announcement.

This report was published on July 19, 2022.

Target price is $16.70 Current Price is $13.14 Difference: $3.56
If JIN meets the Goldman Sachs target it will return approximately 27% (excluding dividends, fees and charges).
Current consensus price target is $17.53, suggesting upside of 33.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 43.00 cents and EPS of 51.00 cents.
At the last closing share price the estimated dividend yield is 3.27%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.76.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 51.0, implying annual growth of 18.1%.
Current consensus DPS estimate is 41.7, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 25.8.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 47.00 cents and EPS of 58.00 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 22.66.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 61.3, implying annual growth of 20.2%.
Current consensus DPS estimate is 45.8, implying a prospective dividend yield of 3.5%.
Current consensus EPS estimate suggests the PER is 21.4.

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

LIC    LIFESTYLE COMMUNITIES LIMITED

Aged Care & Seniors – Overnight Price: $15.83

Jarden rates ((LIC)) as Buy (1) –

Jarden highlights Lifestyle Communities' pre-released FY22 results included an update on site settlements and deferred management fees (DMF).

The analysts viewed the upgrade in settlement targets by 30% over a three year period along with seven new projects in FY23 and the increases in DMF resales, as positives for the company.

Despite potential cost headwinds, east coast rainfall and falling house prices, the entry of major developers Mirvac Group ((MGR)) and Stockland ((SGP)) into the sector provide further support for land release names like Lifestyle Communities, in the broker's view.

Buy rating retained and the price target is raised to $18.90 from $17.80.

This report was published on July 20, 2022.

Target price is $18.90 Current Price is $15.83 Difference: $3.07
If LIC meets the Jarden target it will return approximately 19% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 10.50 cents and EPS of 55.10 cents.
At the last closing share price the estimated dividend yield is 0.66%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.73.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 12.50 cents and EPS of 56.90 cents.
At the last closing share price the estimated dividend yield is 0.79%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.82.

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

NST    NORTHERN STAR RESOURCES LIMITED

Gold & Silver – Overnight Price: $7.31

JP Morgan rates ((NST)) as Overweight (1) –

Northern Star Resources' 4Q production was in-line with JP Morgan's forecast, while all-in sustaining costs (AISC) were a 5% beat on a stronger than expected quarter at Jundee, Pogo and the Super Pit.

Management's production guidance proved a slight miss versus the broker's estimate while guidance for AISC was in-line.

FY22 results are due on August 24, and JP Morgan forecasts underlying earnings (EBITDA) of $1.6bn and profit of $327m. The Overweight rating and $9.00 target price are unchanged.

This report was published on July 21, 2022.

Target price is $9.00 Current Price is $7.31 Difference: $1.69
If NST meets the JP Morgan target it will return approximately 23% (excluding dividends, fees and charges).
Current consensus price target is $10.20, suggesting upside of 39.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

JP Morgan forecasts a full year FY22 dividend of 23.00 cents and EPS of 24.00 cents.
At the last closing share price the estimated dividend yield is 3.15%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.46.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 23.9, implying annual growth of -79.2%.
Current consensus DPS estimate is 22.7, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 30.6.

Forecast for FY23:

JP Morgan forecasts a full year FY23 dividend of 26.00 cents and EPS of 41.00 cents.
At the last closing share price the estimated dividend yield is 3.56%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.83.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 35.2, implying annual growth of 47.3%.
Current consensus DPS estimate is 23.6, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 20.8.

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

SGR    STAR ENTERTAINMENT GROUP LIMITED

Gaming – Overnight Price: $2.95

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

Goldman Sachs lowers its FY22-FY24 earnings (EBITDA) forecasts for Star Entertainment by an average of -4%, largely due to a softer expected VIP revenue ramp-up and the challenging macro/consumer backdrop. The target eases to $3.71 from $3.75.

Due to the uncertainties of the independent reviews taking place in NSW and QLD, and the approved gaming floor opening for competitor Crown Resorts ((CWN)), the analyst retains a Neutral rating.

This report was published on July 19, 2022.

Target price is $3.71 Current Price is $2.95 Difference: $0.76
If SGR meets the Goldman Sachs target it will return approximately 26% (excluding dividends, fees and charges).
Current consensus price target is $3.68, suggesting upside of 24.7%(ex-dividends)
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 3.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 98.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -3.2, 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 N/A.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 11.00 cents and EPS of 18.00 cents.
At the last closing share price the estimated dividend yield is 3.73%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.39.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.1, implying annual growth of N/A.
Current consensus DPS estimate is 11.9, implying a prospective dividend yield of 4.0%.
Current consensus EPS estimate suggests the PER is 16.3.

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

SLA    SILK LASER AUSTRALIA LIMITED

Healthcare services – Overnight Price: $2.40

Jarden rates ((SLA)) as Buy (1) –

Silk Laser Australia's acquisition of Unique Laser increases its clinic to 128, to be funded from cash reserves, and compares with Jarden's previous estimate of 125.

Jarden expects the acquisition will be accretive and the cash outlay minimal.

FY23 EPS forecasts rise 0.9% to reflect the higher clinic count, but changes to the broker's risk-free rate trigger a fall in the target price to $3.15 from $3.62.

The broker considers the recent retreat in Silk Laser's share price to be overdone. Buy rating retained.

This report was published on July 18, 2022.

Target price is $3.15 Current Price is $2.40 Difference: $0.75
If SLA meets the Jarden target it will return approximately 31% (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 16.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.46.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 0.00 cents and EPS of 24.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.00.

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

SUN    SUNCORP GROUP LIMITED

Insurance – Overnight Price: $11.30

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

Suncorp Group has sold Suncorp Bank to ANZ Bank for $4.9bn, subject to regulatory approval.

Jarden is not surprised given the reduction in cross-selling opportunities post the 2019 Financial Services Royal Commission, the bank's high cost-to-income ratio, an update guiding to a below-forecast result, and a slowing housing market.

The broker considers the deal to be sensible and notes the sale was struck on a 20% premium to previous regional bank averages pre-synergies and spies an opportunity for the Suncorp Group to narrow its discount to Insurance Australia Group ((IAG)).

Target price rises to $13.10 from $12.40. Overweight rating retained.

This report was published on July 18, 2022.

Target price is $13.10 Current Price is $11.30 Difference: $1.8
If SUN meets the Jarden target it will return approximately 16% (excluding dividends, fees and charges).
Current consensus price target is $13.17, suggesting upside of 16.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 44.00 cents and EPS of 52.80 cents.
At the last closing share price the estimated dividend yield is 3.89%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.40.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 53.4, implying annual growth of -34.0%.
Current consensus DPS estimate is 42.2, implying a prospective dividend yield of 3.7%.
Current consensus EPS estimate suggests the PER is 21.2.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 95.70 cents and EPS of 90.70 cents.
At the last closing share price the estimated dividend yield is 8.47%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.46.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 90.1, implying annual growth of 68.7%.
Current consensus DPS estimate is 70.8, implying a prospective dividend yield of 6.3%.
Current consensus EPS estimate suggests the PER is 12.5.

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

WHC    WHITEHAVEN COAL LIMITED

Coal – Overnight Price: $6.09

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

Goldman Sachs had an investor meeting with the CEO and CFO, post the 4Q22 operating results for Whitehaven Coal.

The company executives confirmed ongoing strength in thermal coal prices; a 20-50% capital return out of earnings, including share buybacks and  joint venture discussions with Japanese customers for the Vickery project, subject to a sustained rise in the thermal coal price forecasts.

Goldman Sachs retains a Buy rating, highlighting attractive valuation and $1bn in net cash. The price target is unchanged at $6.40.

This report was published on July 19, 2022.

Target price is $6.40 Current Price is $6.09 Difference: $0.31
If WHC meets the Goldman Sachs target it will return approximately 5% (excluding dividends, fees and charges).
Current consensus price target is $7.45, suggesting upside of 22.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 71.00 cents and EPS of 192.00 cents.
At the last closing share price the estimated dividend yield is 11.66%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 3.17.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 189.6, implying annual growth of N/A.
Current consensus DPS estimate is 69.8, implying a prospective dividend yield of 11.5%.
Current consensus EPS estimate suggests the PER is 3.2.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 108.00 cents and EPS of 217.00 cents.
At the last closing share price the estimated dividend yield is 17.73%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 2.81.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 310.0, implying annual growth of 63.5%.
Current consensus DPS estimate is 120.2, implying a prospective dividend yield of 19.7%.
Current consensus EPS estimate suggests the PER is 2.0.

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

WZR    WISR LIMITED

Business & Consumer Credit – Overnight Price: $0.08

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

Wilsons sees a positive read through, particularly for Wisr and Plenti Group ((PLT)), from results released by peer Harmony Corp ((HMY)) showing Australian loan book growth and a wider use of products by existing customers.

In addition, Harmony passed on price increases and had less customers in over 90 day arrears.

In anticipation of upcoming results for Wisr, Wilsons forecasts total origination growth of 84.1% year-on-year and average loan book growth of 80.3%.

The  broker's Overweight rating and $0.30 target price are unchanged.

This report was published on July 20, 2022.

Target price is $0.30 Current Price is $0.08 Difference: $0.22
If WZR meets the Wilsons target it will return approximately 275% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 8.00.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 0.80 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

Disclaimer:
The content of this information does in no way reflect the opinions of FNArena, or of its journalists. In fact we don't have any opinion about the stock market, its value, future direction or individual shares. FNArena solely reports about what the main experts in the market note, believe and comment on. By doing so we believe we provide intelligent investors with a valuable tool that helps them in making up their own minds, reading market trends and getting a feel for what is happening beneath the surface. This document is provided for informational purposes only. It does not constitute an offer to sell or a solicitation to buy any security or other financial instrument. FNArena employs very experienced journalists who base their work on information believed to be reliable and accurate, though no guarantee is given that the daily report is accurate or complete. Investors should contact their personal adviser before making any investment decision.

As part of emerging new trends overseas, The Australian Broker Call *Extra* Edition also includes providers of sponsored research. Readers should bear in mind, sponsored research, while not necessarily of lower quality, has the embedded complication that the company that is the subject of the research has paid for this research. Providers of sponsored research that can potentially be included in this Report are Breakaway Research, Edison Investment Research, Independent Investment Research, NDF Research, Pitt Street Research, and TMT Analytics.

Decisions about inclusions in this Report are made independently of the providers of stock market research and at full discretion of the team of journalists responsible for content at FNArena. Inclusion does not equal endorsement, in any way, shape or form. This Report is provided for informational purposes only.

Click to view our Glossary of Financial Terms