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

This story features AROA BIOSURGERY LIMITED, and other companies. For more info SHARE ANALYSIS: ARX

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)

ARX   BCB   CSL   DSE   EMN   EVS   GDG   IGL   IPH   JLG   LPD   PPS   SBM   SGP   SGR   WSP  

ARX    AROA BIOSURGERY LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $0.89

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

Bell Potter retains a positive view on Aroa Biosurgery and the recent pre-clinical trials validate the Enivo device, highlights the analyst.

The next stage is a human pilot study to test the device relative to existing ones on the market and Bell Potter considers the "theoretical advantage" of the product is that Aroa-ECM may increase the speed of tissue healing and wound closure.

A Buy rating and $1.40 target are retained with forecasts based on existing (competitor's) product sales Endoform, Myriad and OviTex and minimal revenues from the Enivo product.

This report was published on October 19, 2022.

Target price is $1.40 Current Price is $0.89 Difference: $0.51
If ARX meets the Bell Potter target it will return approximately 57% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 2.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 30.69.

Forecast for FY24:

Bell Potter forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 0.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 890.00.

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: $0.32

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

Shaw and Partners assesses the Q3 results for Bowen Coking Coal, which included the first two 40,000t shipment from Bluff, generating revenues of $31m and the first shipment from Broadmeadow East.

As operations are ramped up, cashflow is expected to become positive in Q4 with forecast revenues of $100m and operating costs of -$60m.

Shaw and Partners expects coal prices to stay high for the next 2-3 years and views Bowen Coking Coal as having a growth trajectory to 405Mtpa in that time frame.

The Buy rating and target price of $0.51 are retained.

This report was published on October 18, 2022.

Target price is $0.51 Current Price is $0.32 Difference: $0.195
If BCB 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 minus 0.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 45.00.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of 11.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 2.76.

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

CSL    CSL LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $276.00

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

CSL provided an update on the Vifor acquisition which Wilsons views positively, with the company detailing the strategic rational for the purchase.

Of note the company will enhance the development of assets in the Chronic Kidney Disease space to include nephrology and dialysis.

Wilsons adjusted earnings forecasts by -7% for FY23 and -6% for FY24 including a lowering of the Vifor contribution by -19% for FY23 and -8% for FY24.

The broker maintains earnings forecasts for Behring and Seqirus and raises the working capital estimates.

Overweight. The target price is lowered -7% to $318.33 from $342.55.

This report was published on October 19, 2022.

Target price is $318.33 Current Price is $276.00 Difference: $42.33
If CSL meets the Wilsons target it will return approximately 15% (excluding dividends, fees and charges).
Current consensus price target is $323.95, suggesting upside of 17.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 337.06 cents and EPS of 757.68 cents.
At the last closing share price the estimated dividend yield is 1.22%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 36.43.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 868.7, implying annual growth of N/A.
Current consensus DPS estimate is 402.9, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 31.8.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 389.46 cents and EPS of 877.21 cents.
At the last closing share price the estimated dividend yield is 1.41%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.46.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1077.7, implying annual growth of 24.1%.
Current consensus DPS estimate is 494.1, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 25.6.

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

DSE    DROPSUITE LIMITED

Cloud services – Overnight Price: $0.20

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

Canaccord Genuity were very upbeat about Dropsuite's Q3 results, pointing to 79% growth in Annual Recurring Revenue (ARR), compared to 63% growth in the previous quarter.

The broker considers Dropsuite as "one of the fastest growing stocks on the ASX" with the addition of 78k new users,  bringing total users to 886k, representing 54% growth on a year ago.

Free cash flow rose and the gross margin improved to 66%, an ongoing improvement over the last two quarters, while cash levels reached $23m. 

Canaccord Genuity sees further upside to medium term earnings forecasts with the upgraded ARR estimates below the current growth rates.

A Buy rating is retained and the target is raised to 32c from 30c.

This report was published on October 20, 2022.

Target price is $0.32 Current Price is $0.20 Difference: $0.115
If DSE meets the Canaccord Genuity target it will return approximately 56% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of 0.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 205.00.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 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 102.50.

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

EMN    EURO MANGANESE INC

New Battery Elements – Overnight Price: $0.27

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

Canaccord Genuity recently conducted a site visit to Euro Manganese's Chvaletice Manganese Project.

The analyst noted the demonstration plant is being assembled, commissioning is expected the December quarter of 2022; management guided to an off take agreement by the end of 2022 and the plant's location is well positioned for infrastructure and labour force. 

Speculative Buy rating and the $1.15 target are retained.

This report was published on October 19, 2022.

Target price is $1.15 Current Price is $0.27 Difference: $0.88
If EMN meets the Canaccord Genuity target it will return approximately 326% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 2.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 13.50.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 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 27.00.

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

EVS    ENVIROSUITE LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $0.12

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

EnviroSuite reported positive Q1 results with growth of 23.5% in new annual recurring revenue of $2.1m and total sales came in at $3.4m.

The company added 18 new sites, composed of 8 new customers and 10 from existing customers, and EnviroSuite expects to be EBITDA positive during FY23.

A Buy rating is retained and the price target is adjusted to $0.22 from $0.24.

This report was published on October 19, 2022.

Target price is $0.22 Current Price is $0.12 Difference: $0.1
If EVS meets the Bell Potter target it will return approximately 83% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 0.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 13.33.

Forecast for FY24:

Bell Potter forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 0.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 30.00.

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

GDG    GENERATION DEVELOPMENT GROUP LIMITED

Wealth Management & Investments – Overnight Price: $1.14

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

Generation Development has reported sales flows of $136m in its first quarter, largely in line with Shaw and Partners' expectations, and net inflows of $102m, down -28% year-on-year. 

The company also reported ongoing outperformance from its Lonsec business, with funds under management ahead of the broker's expectations at $6.4bn, including the acquisition of Implemented Portfolios. 

Shaw and Partners continues to see material upside potential across all Generation Development's pillars. The Buy rating is retained and the target price decreases to $1.92 from $1.94.

This report was published on October 18, 2022.

Target price is $1.92 Current Price is $1.14 Difference: $0.785
If GDG meets the Shaw and Partners target it will return approximately 69% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 2.00 cents and EPS of 3.60 cents.
At the last closing share price the estimated dividend yield is 1.76%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.53.

Forecast for FY24:

Shaw and Partners forecasts a full year FY24 dividend of 2.00 cents and EPS of 5.20 cents.
At the last closing share price the estimated dividend yield is 1.76%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.83.

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

IGL    IVE GROUP LIMITED

Media – Overnight Price: $2.32

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

IVE Group has completed what Shaw and Partners has described as the highly accretive acquisition of Ovato, which adds $160m in revenues and $28m in earnings at full run-rate. 

The company continues to discuss movements into the packaging sector, and Shaw and Partners expects further acquisitions to facilitate the move are likely. The broker likes IVE Group's history of delivering synergies and earnings through acquisitions. 

The Buy rating is retained and the target price increases to $3.27 from $2.51.

This report was published on October 18, 2022.

Target price is $3.27 Current Price is $2.32 Difference: $0.95
If IGL meets the Shaw and Partners target it will return approximately 41% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 17.60 cents and EPS of 24.80 cents.
At the last closing share price the estimated dividend yield is 7.59%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.35.

Forecast for FY24:

Shaw and Partners forecasts a full year FY24 dividend of 22.90 cents and EPS of 31.80 cents.
At the last closing share price the estimated dividend yield is 9.87%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.30.

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

IPH    IPH LIMITED

Legal – Overnight Price: $9.67

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

IPH continues to grow the business through an acquisitive strategy with Canaccord Genuity estimating some $53m of the company's earnings growth from $42 in 2015 to $133m in 2022 have been from acquisitions and $20m from efficiency improvements.

The latest purchase of Smart & Biggar, with a 15% share of the patent filings market in Canada, makes IPH the number one IP firm in Canada, highlights the analyst.

Canaccord Genuity adjusts earnings forecasts for the Australian dollar weakness and thus forecast FY23 earnings rise by 2%. The broker expects -$5m annual cost savings from FY25 onwards.

A Buy rating and $11.65 target are retained.

This report was published on October 19, 2022.

Target price is $11.65 Current Price is $9.67 Difference: $1.98
If IPH meets the Canaccord Genuity target it will return approximately 20% (excluding dividends, fees and charges).
Current consensus price target is $11.19, suggesting upside of 15.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 34.00 cents and EPS of 45.00 cents.
At the last closing share price the estimated dividend yield is 3.52%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.49.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 43.8, implying annual growth of 81.8%.
Current consensus DPS estimate is 33.3, implying a prospective dividend yield of 3.4%.
Current consensus EPS estimate suggests the PER is 22.1.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 37.00 cents and EPS of 48.00 cents.
At the last closing share price the estimated dividend yield is 3.83%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.15.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 45.4, implying annual growth of 3.7%.
Current consensus DPS estimate is 34.2, implying a prospective dividend yield of 3.5%.
Current consensus EPS estimate suggests the PER is 21.3.

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

JLG    JOHNS LYNG GROUP LIMITED

Building Products & Services – Overnight Price: $6.42

Bell Potter rates ((JLG)) as Upgrade to Buy (1) –

Bell Potter considers Johns Lyng will have sufficient capacity to deal with the work awarded from Victorian flood disaster recovery, that is part of the Victorian Government's $351m aid package.

The size of the contract has not been announced, but could be in the order of $142m, a similar amount awarded by the NSW Government to the recent flood disaster NSW and QLD, the broker suggests.

The analyst adjusts earnings for the pick up in work contracts for FY23 to FY25 by 1%-4%, assuming a work run-rate that is comparable to the NSW experience.

The target is raised to $7.90 from $7.80 and the rating is upgraded to Buy from Neutral.

This report was published on October 19, 2022.

Target price is $7.90 Current Price is $6.42 Difference: $1.48
If JLG meets the Bell Potter target it will return approximately 23% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 7.50 cents and EPS of 18.70 cents.
At the last closing share price the estimated dividend yield is 1.17%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 34.33.

Forecast for FY24:

Bell Potter forecasts a full year FY24 dividend of 8.50 cents and EPS of 21.30 cents.
At the last closing share price the estimated dividend yield is 1.32%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.14.

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

LPD    LEPIDICO LIMITED

New Battery Elements – Overnight Price: $0.02

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

Shaw and Partners highlights the 1-for-10 renounceable rights issue, raising up to $11.7m at 1.8c per share by Lepidico.

The funds are targeted for the completion of the Front End Engineering and Design in the company's Phase 1 (5000tpa) lithium plant in Namibia plus the construction of the Abu Dhabi facilities.

A final investment decision is expected by early 2023.

Shaw and Partners retains a Buy rating and 6c price target and considers the target conservative if the company can successfully "pioneer" this alternative source of lithium.

This report was published on October 18, 2022.

Target price is $0.06 Current Price is $0.02 Difference: $0.039
If LPD meets the Shaw and Partners target it will return approximately 186% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 0.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 21.00.

Forecast for FY24:

Shaw and Partners forecasts a full year FY24 dividend of 0.00 cents and EPS of 0.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.20.

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

PPS    PRAEMIUM LIMITED

Wealth Management & Investments – Overnight Price: $0.79

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

Praemium's first quarter result has marginally beat Shaw and Partners' expectations with inflows of $659m. Funds under administration lifted 2% quarter-on-quarter to $41.4bn, which the broker considers a strong outcome given market movements. 

In Shaw and Partners view, Praemium remains undervalued compared to peers and could offer significant value to top industry players should a transaction eventuate.

The Buy rating and target price of $1.30 are retained.

This report was published on October 18, 2022.

Target price is $1.30 Current Price is $0.79 Difference: $0.51
If PPS 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 FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of 1.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 71.82.

Forecast for FY24:

Shaw and Partners forecasts a full year FY24 dividend of 0.00 cents and EPS of 1.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 46.47.

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

SBM    ST. BARBARA LIMITED

Gold & Silver – Overnight Price: $0.49

Canaccord Genuity rates ((SBM)) as Downgrade to Sell from Hold (5) –

St. Barbara reported September quarter production of 64koz, which missed both Canaccord Genuity and consensus forecasts of 79koz and 73koz, respectively.

The company experienced multiple issues, including labour problems, a decline in mined grade and impactful weather events. Costs rose substantially as a result of the lower production.

Cash on hand fell to $65m, well below the broker's estimates and on current forecasts there is an increased risk of a cash/liquidity squeeze by the end of FY23 if there are no changes to the gold price or easing of pressures. \

St. Barbara has lowered capex guidance for FY23.

The broker's EBITDA forecasts are reduced -40% to reflect a -12% reduction in production and a 13% increase in costs for FY23.

The target is lowered to $0.50 from $0.90 and the rating downgraded to Sell from Hold.

This report was published on October 20, 2022.

Target price is $0.50 Current Price is $0.49 Difference: $0.005
If SBM meets the Canaccord Genuity target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $0.69, suggesting upside of 39.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of 3.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -4.0, implying annual growth of N/A.
Current consensus DPS estimate is 0.3, implying a prospective dividend yield of 0.6%.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of 10.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.95.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -0.1, implying annual growth of N/A.
Current consensus DPS estimate is 1.5, implying a prospective dividend yield of 3.0%.
Current consensus EPS estimate suggests the PER is N/A.

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

SGP    STOCKLAND

Infra & Property Developers – Overnight Price: $3.38

Jarden rates ((SGP)) as Neutral (3) –

Jarden assesses Stockland's Q1 results as positive with the company reaffirming guidance for FY23.

However,  cracks in the residential housing market from a rising interest rate environment continue to weight on sales and enquiries, down -45% and -26% respectively, on the previous quarter.

The analyst highlights Stockland's balance sheet strength, with $1.4bn in liquidity and gearing of around 18% at the end of FY22.

Equally the group has an "ongoing preference of the over-50's lifestyle communities product", which Jarden pointed out as an additional opportunity with the balance sheet strength.

The target falls to $3.70 from $3.90 and the Neutral rating is retained.

This report was published on October 18, 2022.

Target price is $3.70 Current Price is $3.38 Difference: $0.32
If SGP meets the Jarden target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $4.02, suggesting upside of 18.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 27.50 cents and EPS of 34.30 cents.
At the last closing share price the estimated dividend yield is 8.14%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.85.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 32.5, implying annual growth of -43.9%.
Current consensus DPS estimate is 27.0, implying a prospective dividend yield of 8.0%.
Current consensus EPS estimate suggests the PER is 10.4.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 28.50 cents and EPS of 33.20 cents.
At the last closing share price the estimated dividend yield is 8.43%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.18.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 29.7, implying annual growth of -8.6%.
Current consensus DPS estimate is 25.8, implying a prospective dividend yield of 7.6%.
Current consensus EPS estimate suggests the PER is 11.4.

Market Sentiment: 0.5
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: $2.89

Jarden rates ((SGR)) as Buy (1) –

Taking into account the $100m fine Star Entertainment received, Jarden has assumed the company will pay the fine over a 12-month time frame and has accordingly adjusted earnings forecasts.

The broker reduces EPS forecasts by -1% for FY23 and -2% for FY24, off the back of higher interest costs and forecasts no interim dividend.

The sale of the Brisbane Treasury and Union Street in Pyrmont should assist in deleveraging by $170m and $78m, respectively.

Operationally, Jarden highlights the robust trading results from the June quarter. This is forecast to continue into the 1H23.

Jarden retains a Buy rating and reduces the target to $3.67 from $3.77.

This report was published on October 18, 2022.

Target price is $3.67 Current Price is $2.89 Difference: $0.78
If SGR meets the Jarden target it will return approximately 27% (excluding dividends, fees and charges).
Current consensus price target is $3.41, suggesting upside of 18.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 8.00 cents and EPS of 15.90 cents.
At the last closing share price the estimated dividend yield is 2.77%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.18.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 10.1, implying annual growth of N/A.
Current consensus DPS estimate is 9.0, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 28.6.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 17.00 cents and EPS of 16.50 cents.
At the last closing share price the estimated dividend yield is 5.88%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.52.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.9, implying annual growth of 67.3%.
Current consensus DPS estimate is 12.8, implying a prospective dividend yield of 4.4%.
Current consensus EPS estimate suggests the PER is 17.1.

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

WSP    WHISPIR LIMITED

Cloud services – Overnight Price: $0.78

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

Shaw and Partners views the move by the US regulators and the Federal Communications Commission to address the growth in spam texting as a positive tailwind for Whispir in North America.

As business messaging is becoming more complex, Shaw and Partners views a "big picture" opportunity for cloud vendors, such as Whispir,  to assist clients navigate the problems of increased spam texting and possible regulatory changes.

The broker continues to assess the company's valuation as attractive, trading on a FY23 EV/Revenue multiple of less than 1x.

A Buy rating and $3.50 price target are maintained.

This report was published on October 18, 2022.

Target price is $3.50 Current Price is $0.78 Difference: $2.72
If WSP meets the Shaw and Partners target it will return approximately 349% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 9.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 8.48.

Forecast for FY24:

Shaw and Partners forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 0.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 156.00.

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

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Disclaimer:
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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.

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