Australian Broker Call *Extra* Edition – Aug 10, 2022

This story features AMP LIMITED, and other companies. For more info SHARE ANALYSIS: AMP

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)

AMP   CIP   COF   CTP   GMA   HCW   HUB   IFL   ING   LDX   LYC   MFG   MGR   NEA   NWL   OZL   PDL   PTM   PXA   SGP   TLS   TPG  

AMP    AMP LIMITED

Insurance – Overnight Price: $1.17

Jarden rates ((AMP)) as Neutral (3) –

Across Diversified Financials, Jarden expects weaker markets to weigh on Wealth and Asset Managers for June 30 results.

The broker retains its Neutral rating on AMP, though there is potential for earlier capital management at 1H results. The $1.25 target price is unchanged.

This report was published on August 5, 2022.

Target price is $1.25 Current Price is $1.17 Difference: $0.08
If AMP meets the Jarden target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $1.08, suggesting downside of -7.7%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 0.00 cents and EPS of 6.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.57.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 6.5, implying annual growth of N/A.
Current consensus DPS estimate is 0.6, implying a prospective dividend yield of 0.5%.
Current consensus EPS estimate suggests the PER is 18.0.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 5.00 cents and EPS of 8.70 cents.
At the last closing share price the estimated dividend yield is 4.27%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.45.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.2, implying annual growth of 26.2%.
Current consensus DPS estimate is 2.2, implying a prospective dividend yield of 1.9%.
Current consensus EPS estimate suggests the PER is 14.3.

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

CIP    CENTURIA INDUSTRIAL REIT

REITs – Overnight Price: $2.99

Moelis rates ((CIP)) as Buy (1) –

Centuria Industrial REIT reported FY22 results in line with expectations, including a 17.3 dividend, noted Moelis.

The REIT added 26 assets to the portfolio worth some $765m which the broker highlights are located in "infill" markets which have low industrial vacancy rates and should benefit from strong rental growth.

Centuria Industrial REIT retains a strong capital management program with around 62% hedged through FY23, the broker states.

Moelis adjusts earnings forecasts by -7.4% and -4.8% for FY23 and FY24. respectively, taking higher interest rates into account.

The target price is lowered to $3.88 from $3.97 and Moelis retains the Buy rating.

This report was published on August 4, 2022.

Target price is $3.88 Current Price is $2.99 Difference: $0.89
If CIP meets the Moelis target it will return approximately 30% (excluding dividends, fees and charges).
Current consensus price target is $3.55, suggesting upside of 18.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 16.00 cents and EPS of 17.00 cents.
At the last closing share price the estimated dividend yield is 5.35%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.59.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.8, implying annual growth of -72.0%.
Current consensus DPS estimate is 16.0, implying a prospective dividend yield of 5.4%.
Current consensus EPS estimate suggests the PER is 17.8.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 16.10 cents and EPS of 17.60 cents.
At the last closing share price the estimated dividend yield is 5.38%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.99.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.0, implying annual growth of 1.2%.
Current consensus DPS estimate is 16.3, implying a prospective dividend yield of 5.5%.
Current consensus EPS estimate suggests the PER is 17.6.

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

COF    CENTURIA OFFICE REIT

REITs – Overnight Price: $1.68

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

While Centuria Office REIT has delivered an in-line FY22 according to Jarden, the broker notes below consensus guidance for the coming year drew focus. 

The company reported funds from operations of 18.2 cents per share for FY22, compared to Jarden's anticipated 18.4 cents, and a dividend per share of 16.6 cents. 

The REIT is guiding to funds from operations of 15.8 cents per share in FY23, with a dividend of 14.1 cents per share, which compare to consensus forecasts of 17.7 cents and 16.2 cents per share, respectively. The broker notes increased cost of debt contributed.

The Underweight rating is retained and the target price declines to $1.95 from $2.15.

This report was published on August 2, 2022.

Target price is $1.95 Current Price is $1.68 Difference: $0.27
If COF meets the Jarden target it will return approximately 16% (excluding dividends, fees and charges).
Current consensus price target is $1.97, suggesting upside of 17.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 14.10 cents and EPS of 16.00 cents.
At the last closing share price the estimated dividend yield is 8.39%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.1, implying annual growth of -24.2%.
Current consensus DPS estimate is 14.1, implying a prospective dividend yield of 8.4%.
Current consensus EPS estimate suggests the PER is 11.1.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 14.50 cents and EPS of 16.20 cents.
At the last closing share price the estimated dividend yield is 8.63%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.37.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.4, implying annual growth of 2.0%.
Current consensus DPS estimate is 14.3, implying a prospective dividend yield of 8.5%.
Current consensus EPS estimate suggests the PER is 10.9.

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

CTP    CENTRAL PETROLEUM LIMITED

NatGas – Overnight Price: $0.11

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

Central Petroleum reported 4Q22 results with $10m in revenue, ahead of Bell Potter forecasts.

Of note, points out the analyst were the weaker Mereenie and Palm Valley production volumes from maintenance of the Northern Gas Pipeline, which were offset by selling into the higher price spot markets.

Encouragingly net debt fell to $10m from $15m and Bell Potter views the updated strategy to target gas supply into the Australian east coast markets as positive.

Longer term the appraisal of the lower cost Pacoota Sandstone at Palm Valley may offer a meaningful increase in gas production.

The Buy rating is retained and the price target is lowered to $0.18 from $0.19 after adjusting for the 4Q22 update.

This report was published on August 5, 2022.

Target price is $0.18 Current Price is $0.11 Difference: $0.07
If CTP meets the Bell Potter target it will return approximately 64% (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 0.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 18.33.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of 0.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 36.67.

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

GMA    GENWORTH MORTGAGE INSURANCE AUSTRALIA LIMITED

Banks – Overnight Price: $2.99

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

Goldman Sachs considers the 1H22 results from Genworth Mortgage Insurance Australia as better than expected with earnings up 74% and a 12c fully franked dividend on top of a $100m share buy-back announced.

Earnings were assisted by better than anticipated net claims incurred and higher net earned premiums.

Goldman Sachs adjusts earnings forecasts by -19% and 23% for FY22 and FY23, respectively after adjusting for the results.

Buy rating while the target price is marginally raised to $3.49 from $3.47.

This report was published on August 3, 2022.

Target price is $3.49 Current Price is $2.99 Difference: $0.5
If GMA meets the Goldman Sachs target it will return approximately 17% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 41.00 cents and EPS of 35.00 cents.
At the last closing share price the estimated dividend yield is 13.71%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.54.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 32.00 cents and EPS of 47.00 cents.
At the last closing share price the estimated dividend yield is 10.70%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.36.

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

HCW    HEALTHCO HEALTHCARE & WELLNESS REIT

REITs – Overnight Price: $1.65

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

Goldman Sachs feels it's an ideal time to acquire shares in HealthCo Healthcare & Wellness REIT given recent underperformance against the REIT index.

The broker leaves its FY22 funds from operations (FFO) estimate unchanged and in-line with company guidance of 5.0cpu.

After assuming fewer acquisitions (largely offset by less equity raised) across FY23 and FY24 and slightly higher interest costs across FY23 and FY24, the broker's target price falls to $2.20 from $2.35.

The Buy rating is kept as the REIT is one of Goldman Sachs' top picks for the sector.

This report was published on August 5, 2022.

Target price is $2.20 Current Price is $1.65 Difference: $0.55
If HCW meets the Goldman Sachs target it will return approximately 33% (excluding dividends, fees and charges).
Current consensus price target is $2.02, suggesting upside of 22.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 EPS of 5.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 33.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 5.2, implying annual growth of N/A.
Current consensus DPS estimate is 7.4, implying a prospective dividend yield of 4.5%.
Current consensus EPS estimate suggests the PER is 31.7.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 EPS of 8.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.63.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 7.9, implying annual growth of 51.9%.
Current consensus DPS estimate is 8.8, implying a prospective dividend yield of 5.3%.
Current consensus EPS estimate suggests the PER is 20.9.

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

HUB    HUB24 LIMITED

Wealth Management & Investments – Overnight Price: $24.78

Jarden rates ((HUB)) as Neutral (3) –

Across Diversified Financials, Jarden expects weaker markets to weigh on Wealth and Asset Managers for June 30 results.

The broker retains its Neutral rating on Hub24 and increases its target price to $24.55 from $23.75.

This report was published on August 5, 2022.

Target price is $24.55 Current Price is $24.78 Difference: minus $0.23 (current price is over target).
If HUB meets the Jarden target it will return approximately minus 1% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $29.67, suggesting upside of 19.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 19.70 cents and EPS of 43.80 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 56.58.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 41.0, implying annual growth of 222.3%.
Current consensus DPS estimate is 17.6, implying a prospective dividend yield of 0.7%.
Current consensus EPS estimate suggests the PER is 60.4.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 25.10 cents and EPS of 56.70 cents.
At the last closing share price the estimated dividend yield is 1.01%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 43.70.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 59.2, implying annual growth of 44.4%.
Current consensus DPS estimate is 25.0, implying a prospective dividend yield of 1.0%.
Current consensus EPS estimate suggests the PER is 41.9.

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

IFL    INSIGNIA FINANCIAL LIMITED

Wealth Management & Investments – Overnight Price: $3.20

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

Across Diversified Financials, Jarden expects weaker markets to weigh on Wealth and Asset Managers for June 30 results.

For Insignia Financial, the broker downgrades its rating to Overweight from Buy following a stronger share price performance after the release of a 4Q update. The target price rises to $3.20 from $3.15.

This report was published on August 5, 2022.

Target price is $3.20 Current Price is $3.20 Difference: $0
If IFL meets the Jarden target it will return approximately 0% (excluding dividends, fees and charges).
Current consensus price target is $3.93, suggesting upside of 22.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 21.80 cents and EPS of 33.50 cents.
At the last closing share price the estimated dividend yield is 6.81%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.55.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 34.6, implying annual growth of N/A.
Current consensus DPS estimate is 23.8, implying a prospective dividend yield of 7.4%.
Current consensus EPS estimate suggests the PER is 9.2.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 19.30 cents and EPS of 29.60 cents.
At the last closing share price the estimated dividend yield is 6.03%.
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 33.4, implying annual growth of -3.5%.
Current consensus DPS estimate is 23.9, implying a prospective dividend yield of 7.5%.
Current consensus EPS estimate suggests the PER is 9.6.

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

ING    INGHAMS GROUP LIMITED

Food, Beverages & Tobacco – Overnight Price: $3.04

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

Bell Potter reviews the outlook for Inghams Group following the easing in feed cost inflation with Australian grain prices receding -11% from the highs and globally -15-40%, while poultry prices registered a 6% gain.

Adjusting the change in feed prices, the broker raises earnings by 2% and 20% for FY22 and FY23, respectively, lifting the price target to $3.25 from $3.05.

Despite the compelling valuation of 6.6x FY23 EBITDA, Bell Potter retains a Hold recommendation with concerns around debt levels.

This report was published on August 5, 2022.

Target price is $3.25 Current Price is $3.04 Difference: $0.21
If ING meets the Bell Potter target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $3.13, suggesting upside of 2.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 6.50 cents and EPS of minus 50.50 cents.
At the last closing share price the estimated dividend yield is 2.14%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 6.02.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 12.8, implying annual growth of -42.9%.
Current consensus DPS estimate is 9.7, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 23.8.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 13.50 cents and EPS of 70.30 cents.
At the last closing share price the estimated dividend yield is 4.44%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.32.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 22.0, implying annual growth of 71.9%.
Current consensus DPS estimate is 15.1, implying a prospective dividend yield of 5.0%.
Current consensus EPS estimate suggests the PER is 13.8.

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

LDX    LUMOS DIAGNOSTICS HOLDINGS LIMITED

Medical Equipment & Devices – Overnight Price: $0.06

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

Bell Potter remains cautiously optimistic about future revenue growth from the services arm of Lumos Diagnostics with forecasts of $9.5m in FY23 and growing to $27.4m in FY26, which exceeds pre covid levels.

The optimism is despite the FDA decision not to approve the company's FebriDx application.

The Speculative Buy recommendation and 10c price target are maintained.

This report was published on August 5, 2022.

Target price is $0.10 Current Price is $0.06 Difference: $0.04
If LDX meets the Bell Potter target it will return approximately 67% (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 0.72.

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 1.03.

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: $9.90

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

Goldman Sachs points out the expansion of the Lynas Rare Earths Mt Weld mine will result in a forecast increase in capital expenditure to $1.2bn from $0.9bn but production forecasts equal the company's 2025 target of 10.5ktpa of NdPr.

The expansion will be funded from cashflow while Lynas Rare Earths is also considering another two expansions at Mt Weld, raising production another 6kt pa, potentially.

The broker's earnings forecasts are adjusted by -2% for FY23. 

Goldman Sachs prefers Iluka Resources ((ILU)), with a Buy rating and on the conviction list, on valuation grounds.

A Neutral rating is retained and the price target is lowered to $8.40 from $8.70 with the Net Asset Value (NAV) reduced by -6% to $7.62 on higher capital expenditure.

This report was published on August 3, 2022.

Target price is $8.40 Current Price is $9.90 Difference: minus $1.5 (current price is over target).
If LYC meets the Goldman Sachs target it will return approximately minus 15% (excluding dividends, fees and charges – negative figures indicate an expected loss).
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 61.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.15.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 0.00 cents and EPS of 59.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.78.

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

MFG    MAGELLAN FINANCIAL GROUP LIMITED

Wealth Management & Investments – Overnight Price: $14.86

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

Across Diversified Financials, Jarden expects weaker markets to weigh on Wealth and Asset Managers for June 30 results.

The broker retains its Underweight rating for Magellan Financial and lowers its target to $9.45 from $9.70.

This report was published on August 5, 2022.

Target price is $9.45 Current Price is $14.86 Difference: minus $5.41 (current price is over target).
If MFG meets the Jarden target it will return approximately minus 36% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $11.44, suggesting downside of -23.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 186.80 cents and EPS of 222.50 cents.
At the last closing share price the estimated dividend yield is 12.57%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.68.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 216.8, implying annual growth of 49.9%.
Current consensus DPS estimate is 186.4, implying a prospective dividend yield of 12.5%.
Current consensus EPS estimate suggests the PER is 6.9.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 106.30 cents and EPS of 119.40 cents.
At the last closing share price the estimated dividend yield is 7.15%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.45.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 119.1, implying annual growth of -45.1%.
Current consensus DPS estimate is 103.4, implying a prospective dividend yield of 7.0%.
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

MGR    MIRVAC GROUP

Infra & Property Developers – Overnight Price: $2.09

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

In reviewing the Australian residential property market, Goldman Sachs initiates coverage of Stockland and Mirvac Group.

The analyst reports the house view of a slowing housing market from higher interest rates, supply chain problems and increased input costs which historically had led to falling prices and slower stock turnover, are negative for residential inventory valuations.

Goldman Sachs views Stockland and Mirvac as better positioned this cycle with less inventory restocking at the peak of the 2021 cycle alongside the longer dated inventories.

Although the stock is trading at a -18% discount to stated Net Asset Value (NAV), the broker considers other REITs offer better value.

Mirvac Group is initiated with a Neutral rating and a $2.38 price target.

This report was published on August 9, 2022.

Target price is $2.38 Current Price is $2.09 Difference: $0.29
If MGR meets the Goldman Sachs target it will return approximately 14% (excluding dividends, fees and charges).
Current consensus price target is $2.54, suggesting upside of 21.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 10.20 cents and EPS of 15.10 cents.
At the last closing share price the estimated dividend yield is 4.88%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.84.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 14.3, implying annual growth of -37.5%.
Current consensus DPS estimate is 10.1, implying a prospective dividend yield of 4.8%.
Current consensus EPS estimate suggests the PER is 14.6.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 10.30 cents and EPS of 15.30 cents.
At the last closing share price the estimated dividend yield is 4.93%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.66.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 14.9, implying annual growth of 4.2%.
Current consensus DPS estimate is 10.7, implying a prospective dividend yield of 5.1%.
Current consensus EPS estimate suggests the PER is 14.0.

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

NEA    NEARMAP LIMITED

Software & Services – Overnight Price: $1.55

Goldman Sachs rates ((NEA)) as Initiate with Neutral (3) –

Goldman Sachs initiates coverage of Nearmap with a Neutral recommendation.

The broker notes the potential from the company's ongoing development in the North American aerial imaging market which has an estimated total addressable market (TAM) of $3bn (some 10x larger than Australia and New Zealand).

Nearmap is concentrating on three sectors, government, roofing and insurance and the North American operations equate to some 80% of the estimated Annual Contract Revenues.

Goldman Sachs is looking for more certainty on future cashflow, earnings and capital expenditure requirements for the North American operations.

Neutral rating and a $1.45 price target.

This report was published on August 3, 2022.

Target price is $1.45 Current Price is $1.55 Difference: minus $0.1 (current price is over target).
If NEA meets the Goldman Sachs target it will return approximately minus 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $1.70, suggesting upside of 9.7%(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 5.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 31.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -5.8, 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:

Goldman Sachs 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 38.75.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -3.9, 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: 0.7
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: $13.30

Jarden rates ((NWL)) as Neutral (3) –

Across Diversified Financials, Jarden expects weaker markets to weigh on Wealth and Asset Managers for June 30 results.

The broker retains its Neutral rating for Netwealth Group and raises its target price to $13.60 from $13.45.

This report was published on August 5, 2022.

Target price is $13.60 Current Price is $13.30 Difference: $0.3
If NWL meets the Jarden target it will return approximately 2% (excluding dividends, fees and charges).
Current consensus price target is $14.81, suggesting upside of 11.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 19.80 cents and EPS of 22.60 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 58.85.

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 1.5%.
Current consensus EPS estimate suggests the PER is 57.6.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 26.10 cents and EPS of 30.10 cents.
At the last closing share price the estimated dividend yield is 1.96%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 44.19.

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 1.8%.
Current consensus EPS estimate suggests the PER is 47.0.

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

OZL    OZ MINERALS LIMITED

Copper – Overnight Price: $25.66

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

Bell Potter views the $25/ps acquisition proposal by BHP Group for OZ Minerals as an initial offer with the company now in play and the bid price likely to be raised.

The analyst assess the scarcity of OZ Minerals' strategic assets as heightening the possibility of other competitive offers as well as institutional investors seeking a higher price for the copper assets.

The recommendation is downgraded to Hold from Buy on a risk/reward basis and the price target is raised to $25 from $24.25.

This report was published on August 8, 2022.

Target price is $25.00 Current Price is $25.66 Difference: minus $0.66 (current price is over target).
If OZL 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 $21.75, suggesting downside of -15.2%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 16.00 cents and EPS of 103.00 cents.
At the last closing share price the estimated dividend yield is 0.62%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.91.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 91.1, implying annual growth of -42.9%.
Current consensus DPS estimate is 20.6, implying a prospective dividend yield of 0.8%.
Current consensus EPS estimate suggests the PER is 28.2.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 18.00 cents and EPS of 120.80 cents.
At the last closing share price the estimated dividend yield is 0.70%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.24.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 113.2, implying annual growth of 24.3%.
Current consensus DPS estimate is 19.9, implying a prospective dividend yield of 0.8%.
Current consensus EPS estimate suggests the PER is 22.7.

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

PDL    PENDAL GROUP LIMITED

Wealth Management & Investments – Overnight Price: $4.86

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

Across Diversified Financials, Jarden expects weaker markets to weigh on Wealth and Asset Managers for June 30 results.

For Pendal Group, the broker lowers its rating to Overweight from Buy on valuation. The Overweight rating is assigned given the potential takeover by Perpetual ((PPT)).

The target price rises to $4.65 from $4.45. 

This report was published on August 5, 2022.

Target price is $4.65 Current Price is $4.86 Difference: minus $0.21 (current price is over target).
If PDL meets the Jarden target it will return approximately minus 4% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $4.33, suggesting downside of -10.9%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 437.00 cents and EPS of 46.70 cents.
At the last closing share price the estimated dividend yield is 89.92%.
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 47.7, implying annual growth of -8.2%.
Current consensus DPS estimate is 43.8, implying a prospective dividend yield of 9.0%.
Current consensus EPS estimate suggests the PER is 10.2.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 31.00 cents and EPS of 34.50 cents.
At the last closing share price the estimated dividend yield is 6.38%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.09.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 36.3, implying annual growth of -23.9%.
Current consensus DPS estimate is 32.8, implying a prospective dividend yield of 6.7%.
Current consensus EPS estimate suggests the PER is 13.4.

Market Sentiment: 0.4
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: $1.88

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

Across Diversified Financials, Jarden expects weaker markets to weigh on Wealth and Asset Managers for June 30 results.

The broker retains its Underweight rating on Platinum Asset Management and increases its target price to $1.55 from $1.50.

This report was published on August 5, 2022.

Target price is $1.55 Current Price is $1.88 Difference: minus $0.33 (current price is over target).
If PTM meets the Jarden target it will return approximately minus 18% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $1.91, suggesting upside of 1.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 17.60 cents and EPS of 17.70 cents.
At the last closing share price the estimated dividend yield is 9.36%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.62.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 20.3, implying annual growth of -27.9%.
Current consensus DPS estimate is 19.5, implying a prospective dividend yield of 10.4%.
Current consensus EPS estimate suggests the PER is 9.3.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 12.50 cents and EPS of 14.50 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 12.97.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.5, implying annual growth of -18.7%.
Current consensus DPS estimate is 16.0, implying a prospective dividend yield of 8.5%.
Current consensus EPS estimate suggests the PER is 11.4.

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

PXA    PEXA GROUP LIMITED

Overnight Price: $14.74

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

Jarden has noted settlement activity has weakened, dragging on PEXA Group's revenue and PEXA Exchange margins.

The broker highlights New South Wales and Queensland in particular being down -14% on the previous comparable period, and notes total volumes are expected to fall -18% in the coming year.

Given this expected decline, the broker finds risk with consensus forecasts and remains -10% below consensus revenue expectations. Jarden's forecast PEXA Exchange margin of 49.6% in the coming year is also notably below a consensus of 53.0%. 

The Underweight rating is retained and the target price decreases to $12.40 from $13.30.

This report was published on August 3, 2022.

Target price is $12.40 Current Price is $14.74 Difference: minus $2.34 (current price is over target).
If PXA meets the Jarden target it will return approximately minus 16% (excluding dividends, fees and charges – negative figures indicate an expected loss).
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 43.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 33.89.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 0.00 cents and EPS of 30.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 48.49.

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

SGP    STOCKLAND

Infra & Property Developers – Overnight Price: $3.85

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

In reviewing the Australian residential property market, Goldman Sachs initiates coverage of Stockland and Mirvac Group.

The analyst reports the house view of a slowing housing market  from higher interest rates, supply chain problems and increased input costs which historically had led to falling prices and slower stock turnover, are negative for residential inventory valuations.

Goldman Sachs views Stockland and Mirvac as better positioned this cycle with less inventory restocking at the peak of the 2021 cycle alongside the longer dated inventories.

The broker Initiates Stockland with a Buy rating and a $4.44 price target with the stock seen trading at an attractive -10% discount to stated Net Tangible Asset (NTA) and with prospective 7% FY23 yield.

This report was published on August 3, 2022.

Target price is $4.44 Current Price is $3.85 Difference: $0.59
If SGP meets the Goldman Sachs target it will return approximately 15% (excluding dividends, fees and charges).
Current consensus price target is $4.55, suggesting upside of 18.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 26.60 cents.
At the last closing share price the estimated dividend yield is 6.91%.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 30.5, implying annual growth of -34.2%.
Current consensus DPS estimate is 26.7, implying a prospective dividend yield of 6.9%.
Current consensus EPS estimate suggests the PER is 12.6.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 26.70 cents.
At the last closing share price the estimated dividend yield is 6.94%.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 33.5, implying annual growth of 9.8%.
Current consensus DPS estimate is 28.2, implying a prospective dividend yield of 7.3%.
Current consensus EPS estimate suggests the PER is 11.5.

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

TLS    TELSTRA CORPORATION LIMITED

Telecommunication – Overnight Price: $4.03

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

Despite strong cash flows, Goldman Sachs expects Telstra to declare only an 8cps final dividend at FY22 results, due to franking constraints.

The broker raises sector earnings/valuations to reflect positive mobile market trends and allows for the completion of the Digicel acquisition in Telstra's forecast. The target rises by 2% to $4.40, while the Buy rating is retained. 

This report was published on August 5, 2022.

Target price is $4.40 Current Price is $4.03 Difference: $0.37
If TLS meets the Goldman Sachs target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $4.46, suggesting upside of 10.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 16.00 cents and EPS of 14.40 cents.
At the last closing share price the estimated dividend yield is 3.97%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.99.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 13.6, implying annual growth of -13.0%.
Current consensus DPS estimate is 16.0, implying a prospective dividend yield of 4.0%.
Current consensus EPS estimate suggests the PER is 29.6.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 17.00 cents and EPS of 16.60 cents.
At the last closing share price the estimated dividend yield is 4.22%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.28.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.5, implying annual growth of 21.3%.
Current consensus DPS estimate is 16.0, implying a prospective dividend yield of 4.0%.
Current consensus EPS estimate suggests the PER is 24.4.

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

TPG    TPG TELECOM LIMITED

Telecommunication – Overnight Price: $6.45

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

Goldman Sachs raises sector earnings/valuations to reflect positive mobile market trends and raises its target price for TPG Telecom by 6% to $6.60. The increased target reflects lower net debt after TowerCo proceeds.

The broker sees TPG as well placed to mitigate wage inflation pressures and retains its Neutral rating.

First half results are due is on Friday August 19 and the analyst expects revenue of $2,661m and earnings (EBITDA) of $905m versus the consensus expectation of $906m.

This report was published on August 5, 2022.

Target price is $6.60 Current Price is $6.45 Difference: $0.15
If TPG meets the Goldman Sachs target it will return approximately 2% (excluding dividends, fees and charges).
Current consensus price target is $6.91, suggesting upside of 7.1%(ex-dividends)

Forecast for FY22:

Current consensus EPS estimate is 17.5, implying annual growth of 195.6%.
Current consensus DPS estimate is 18.0, implying a prospective dividend yield of 2.8%.
Current consensus EPS estimate suggests the PER is 36.9.

Forecast for FY23:

Current consensus EPS estimate is 21.7, implying annual growth of 24.0%.
Current consensus DPS estimate is 21.0, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 29.7.

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

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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.

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