Australian Broker Call *Extra* Edition – Nov 01, 2022

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

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)

ABC   ALL   AT1   BHP   BID   BIO   BKW   BLD   BPT   BTN   CGS   CHN   COE   CSR   CV1   DCN   EOS   FWD   HRL   IAG   JIN   LBY   MLD   MVP   NST   OLL   OPY   ORG   OVN   PBH   PCK   PDL   PPT   PYG   QBE   RCL   RVR   SGR   SKC   SPT   SUN   SXY   TAH   TLC   UBI   UWL   VTI   WHC (2)   WSA  

ABC    ADBRI LIMITED

Building Products & Services – Overnight Price: $1.57

Jarden rates ((ABC)) as Neutral (3) –

Jarden assesses the Australian building materials companies noting a number of macro headwinds such as inflation from energy and transport could continue to weigh on short term earnings.

Jarden cuts earnings forecasts (ex property) for Adbri by -26.8% for FY22 and -22.1% for FY23, with dividend estimates lowered by -28.5% and -15.6% over the same respective period.

The analyst also reduces the value of Adbri's land sales and development to $382m from $550m with Jarden removing Batesford Quarry from the forecast net present value, due to delayed rezoning problems.

A Neutral rating is retained and the target is lowered to $1.90.

This report was published on October 19, 2022.

Target price is $1.90 Current Price is $1.57 Difference: $0.325
If ABC meets the Jarden target it will return approximately 21% (excluding dividends, fees and charges).
Current consensus price target is $1.55, suggesting downside of -3.2%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 7.40 cents and EPS of 17.00 cents.
At the last closing share price the estimated dividend yield is 4.70%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.26.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 14.0, implying annual growth of -21.7%.
Current consensus DPS estimate is 7.0, implying a prospective dividend yield of 4.4%.
Current consensus EPS estimate suggests the PER is 11.4.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 9.70 cents and EPS of 18.20 cents.
At the last closing share price the estimated dividend yield is 6.16%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.65.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.7, implying annual growth of 19.3%.
Current consensus DPS estimate is 8.1, implying a prospective dividend yield of 5.1%.
Current consensus EPS estimate suggests the PER is 9.6.

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

ALL    ARISTOCRAT LEISURE LIMITED

Gaming – Overnight Price: $36.31

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

Goldman Sachs most preferred sub-segment for domestic gambling is Lotteries, followed by Casinos, with Wagering the least preferred.

Lotteries are the least elastic regarding consumer discretionary spending, due to a low ticket price and high return opportunity, explains the analyst.

The broker feels Aristocrat Leisure offers the most diversified growth opportunity from among its research coverage and retains its Buy rating. The target is set at $42.50, down from $43.00.

The company holds a top three spot in slot machine sales in the US, has a strong digital gaming offering, and is in the early stages of its planned entry into the iGaming market in the US, explains Goldman Sachs.

This report was published on October 14, 2022.

Target price is $42.50 Current Price is $36.31 Difference: $6.19
If ALL meets the Goldman Sachs target it will return approximately 17% (excluding dividends, fees and charges).
Current consensus price target is $42.71, suggesting upside of 17.6%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 64.00 cents and EPS of 178.10 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 20.39.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 163.2, implying annual growth of 27.4%.
Current consensus DPS estimate is 58.5, implying a prospective dividend yield of 1.6%.
Current consensus EPS estimate suggests the PER is 22.2.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 75.00 cents and EPS of 190.20 cents.
At the last closing share price the estimated dividend yield is 2.07%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.09.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 186.7, implying annual growth of 14.4%.
Current consensus DPS estimate is 70.9, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 19.4.

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

AT1    ATOMO DIAGNOSTICS LIMITED

Medical Equipment & Devices – Overnight Price: $0.06

Canaccord Genuity – Cessation of coverage

This report was published on October 14, 2022.

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

BHP    BHP GROUP LIMITED

Bulks – Overnight Price: $37.36

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

BHP Group's September-quarter result pleased Shaw and Partners and guidance was reiterated. No update was provided on the Oz Minerals ((OZL)) offer.

Meanwhile, at a recent site visit, BHP stressed the value of its people and culture as value-sustaining blocks, yet labour issues and weather still proved challenges during the quarter, notes the broker.

The broker appreciates the company's successful corporate engineering projects over the past 18 months (i.e. Woodside), and believes this strength bodes well for the company.

Buy rating and $46.43 target price retained.

This report was published on October 20, 2022.

Target price is $46.43 Current Price is $37.36 Difference: $9.07
If BHP meets the Shaw and Partners target it will return approximately 24% (excluding dividends, fees and charges).
Current consensus price target is $42.12, suggesting upside of 12.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 538.54 cents and EPS of 485.31 cents.
At the last closing share price the estimated dividend yield is 14.41%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.70.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 458.0, implying annual growth of N/A.
Current consensus DPS estimate is 333.2, implying a prospective dividend yield of 8.9%.
Current consensus EPS estimate suggests the PER is 8.2.

Forecast for FY24:

Shaw and Partners forecasts a full year FY24 dividend of 437.90 cents and EPS of 367.07 cents.
At the last closing share price the estimated dividend yield is 11.72%.
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 424.7, implying annual growth of -7.3%.
Current consensus DPS estimate is 310.7, implying a prospective dividend yield of 8.3%.
Current consensus EPS estimate suggests the PER is 8.9.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

BID    BILL IDENTITY LIMITED

Cloud services – Overnight Price: $0.09

Canaccord Genuity – Cessation of coverage

This report was published on October 14, 2022.

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

BIO    BIOME AUSTRALIA LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $0.08

Canaccord Genuity rates ((BIO)) as No Rating (-1) –

Canaccord Genuity has decided to suspend coverage of Biome Australia and may resume coverage at a later date. 

This report was published on October 14, 2022.

Current Price is $0.08. Target price not assessed.

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

BKW    BRICKWORKS LIMITED

Building Products & Services – Overnight Price: $21.97

Jarden rates ((BKW)) as Neutral (3) –

Jarden assesses the Australian building materials companies noting a number of macro headwinds such as inflation from energy and transport could continue to weigh on short term earnings.

Brickworks' property development strategy is assessed as the best in the universe of building material companies, according to Jarden.

However, the analyst lowers FY23 forecast revenues for Building Products (Australia) by -4% and notes the North American operations are performing better than expected.

A Neutral rating is maintained and the target is raised to $26.80 from $23.30 for the increase in NAV for the 26.14% Solax holding and a higher valuation for the North American business.

The FY23 and FY24 dividend per share estimates are lowered to 3% growth from 6% with expected "headwinds" to grow the distribution.

This report was published on October 19, 2022.

Target price is $26.60 Current Price is $21.97 Difference: $4.63
If BKW meets the Jarden target it will return approximately 21% (excluding dividends, fees and charges).
Current consensus price target is $26.00, suggesting upside of 18.3%(ex-dividends)
The company's fiscal year ends in July.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 64.90 cents and EPS of 111.30 cents.
At the last closing share price the estimated dividend yield is 2.95%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.74.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 176.7, implying annual growth of -68.6%.
Current consensus DPS estimate is 64.5, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 12.4.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 66.80 cents and EPS of 62.20 cents.
At the last closing share price the estimated dividend yield is 3.04%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 35.32.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 156.2, implying annual growth of -11.6%.
Current consensus DPS estimate is 66.5, implying a prospective dividend yield of 3.0%.
Current consensus EPS estimate suggests the PER is 14.1.

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

BLD    BORAL LIMITED

Building Products & Services – Overnight Price: $2.88

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

Jarden assesses the Australian building materials companies noting a number of macro headwinds such as inflation from energy and transpor costst could continue to weigh on short term earnings.

Boral's management guided to an estimated land surplus valuation of $1bn and the potential strategic shift from a land sales strategy to a mix of sales and land development, in order to smooth income streams.

Jarden's surplus land holding valuation of $1bn represents 25% of the $3.60, net present value, sum-of-the -parts valuation for Boral.

An Overweight weighting is retained, although the broker highlights short term risks from ongoing wet weather, costs imposts, supply chain problems and the potential impact of rising interest rates on land values.

Alongside CSR ((CSR)), the broker considers Boral offers better "value protection" from the land banks.

This report was published on October 19, 2022.

Target price is $3.60 Current Price is $2.88 Difference: $0.72
If BLD meets the Jarden target it will return approximately 25% (excluding dividends, fees and charges).
Current consensus price target is $2.78, suggesting downside of -1.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 4.60 cents and EPS of 7.70 cents.
At the last closing share price the estimated dividend yield is 1.60%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 37.40.

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 5.0, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 27.1.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 10.00 cents and EPS of 16.70 cents.
At the last closing share price the estimated dividend yield is 3.47%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.25.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 13.8, implying annual growth of 32.7%.
Current consensus DPS estimate is 5.8, implying a prospective dividend yield of 2.1%.
Current consensus EPS estimate suggests the PER is 20.4.

Market Sentiment: -0.5
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: $1.59

Jarden rates ((BPT)) as Buy (1) –

Wet weather and flooding in the Cooper Basin impacted on Beach Energy's Q1 quarterly results with production and revenues coming in below both Jarden and consensus forecasts.

The broker highlights there are risk concerns to FY23 forecasts if wet weather persists while also noting potential impact of the swift "natural field decline" for Kupe and Victorian Otway.

Jarden maintains the Buy rating and expecst that Beach Energy will benefit from the start-up of Waitsia Stage 2 and the flow-on LNG sales over the course of FY23 and into FY24.

The target price decreases to $1.90 from $1.95.

This report was published on October 20, 2022.

Target price is $1.90 Current Price is $1.59 Difference: $0.31
If BPT meets the Jarden target it will return approximately 19% (excluding dividends, fees and charges).
Current consensus price target is $1.82, suggesting upside of 14.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 2.00 cents and EPS of 21.60 cents.
At the last closing share price the estimated dividend yield is 1.26%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.36.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 24.8, implying annual growth of 12.9%.
Current consensus DPS estimate is 2.3, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 6.4.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 8.00 cents and EPS of 33.10 cents.
At the last closing share price the estimated dividend yield is 5.03%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.80.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 27.8, implying annual growth of 12.1%.
Current consensus DPS estimate is 2.7, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 5.7.

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

BTN    BUTN LIMITED

Business & Consumer Credit – Overnight Price: $0.19

Canaccord Genuity rates ((BTN)) as No Rating (-1) –

Canaccord Genuity has decided to suspend coverage of Butn and may resume coverage at a later date. 

This report was published on October 14, 2022.

Current Price is $0.19. Target price not assessed.

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

CGS    COGSTATE LIMITED

Medical Equipment & Devices – Overnight Price: $1.91

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

Stronger signings in July and August saw Cogstate's clinical trials contracts executed lift 103% quarter-on-quarter to US$17.9m in the first quarter. 89% of new contracts were in dementia and Alzheimer's disease trials. 

Primary and secondary endpoints for the lecanemab study were met in the first quarter, and Bell Potter considers the impact of lecanemab results on the clinical trial landscape in Alzheimer’s Disease to be an upcoming catalyst for Cogstate. 

The Buy rating is retained and the target price decreases to $2.15 from $2.20.

This report was published on October 21, 2022.

Target price is $2.15 Current Price is $1.91 Difference: $0.245
If CGS meets the Bell Potter target it will return approximately 13% (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 4.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 46.46.

Forecast for FY24:

Bell Potter forecasts a full year FY24 dividend of 0.00 cents and EPS of 5.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 36.63.

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

CHN    CHALICE MINING LIMITED

Industrial Metals – Overnight Price: $4.27

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

While assays are pending, drilling has all but confirmed a material extension of Chalice Mining's Gonneville deposit, observes Bell Potter. The broker considers results to offer significant resource growth potential to the already significant deposit.

Nickel, cobalt and platinum metals remain critical to both Australia and the US, likely making Chalice Mining attractive to strategic partners. 

The Buy rating and target price of $11.10 are retained.

This report was published on October 21, 2022.

Target price is $11.10 Current Price is $4.27 Difference: $6.83
If CHN meets the Bell Potter target it will return approximately 160% (excluding dividends, fees and charges).

Market Sentiment: 1.0
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: $0.21

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

Jarden analysts admits they were too upbeat about the upgrade to production forecasts for Cooper Energy's Orbost Gas Processing Plant (OGPP) off the back of the restart on September 15.

Post management's update, the analyst considers there are ongoing problems with the unit which first caused the problems in April and May this year.

Accordingly, Jarden adjusts OGPP forecast production rates to 52-53 TJ/day in line with the recent production volumes for OGPP.

The Overweight rating is retained with a $0.30 target.

This report was published on October 20, 2022.

Target price is $0.30 Current Price is $0.21 Difference: $0.09
If COE meets the Jarden target it will return approximately 43% (excluding dividends, fees and charges).
Current consensus price target is $0.28, suggesting upside of 34.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 0.00 cents and EPS of 0.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 210.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 2.2, 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 9.3.

Forecast for FY24:

Jarden forecasts a full year FY24 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 70.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 2.4, implying annual growth of 9.1%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 8.5.

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

CSR    CSR LIMITED

Building Products & Services – Overnight Price: $4.63

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

Jarden assesses the Australian building materials companies noting a number of macro headwinds such as inflation from energy and transport could continue to weigh on short term earnings.

CSR is due to report 1H23 earnings on November 4 and Jarden points out its 1H23 EPS forecast of 21.6c is -2% below consenus.

The analyst will be looking to an update on the Badgery's Creek land development in the results.

Due to the impact of higher interest rate forecasts, Jarden reduces the land NPV for Badgery's Creek, Schofields and Daraa to $632m from $648m.

The broker adjusts the target to $5.65 from $5.90 and an Overweight rating is maintained as CSR and Boral ((BLD)) are considered as offering more "value protection" via their exposure to the land banks.

This report was published on October 19, 2022.

Target price is $5.65 Current Price is $4.63 Difference: $1.02
If CSR meets the Jarden target it will return approximately 22% (excluding dividends, fees and charges).
Current consensus price target is $5.51, suggesting upside of 19.5%(ex-dividends)
The company's fiscal year ends in March.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 34.80 cents and EPS of 43.50 cents.
At the last closing share price the estimated dividend yield is 7.52%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.64.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 43.5, implying annual growth of -22.1%.
Current consensus DPS estimate is 33.5, implying a prospective dividend yield of 7.3%.
Current consensus EPS estimate suggests the PER is 10.6.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 26.20 cents and EPS of 37.40 cents.
At the last closing share price the estimated dividend yield is 5.66%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.38.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 42.0, implying annual growth of -3.4%.
Current consensus DPS estimate is 32.3, implying a prospective dividend yield of 7.0%.
Current consensus EPS estimate suggests the PER is 11.0.

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

CV1    CV CHECK LIMITED

Software & Services – Overnight Price: $0.11

Shaw and Partners rates ((CV1)) as Buy (1) –

CV Check's September-quarter result met Shaw and Partners' forecasts, the company posting a solid revenue and cash-flow performance – it's ninth consecutive quarter of positive operating cash flow, notes the broker.

The company finished the quarter with a cash balance of $11.1m and Shaw considers this a healthy position from which to execute on organic and inorganic growth.

The company rebranded to Kinatico from CV Check during the period, and its ticker is expected to change to ((KYP)).

The broker notes the company is trading at a sharp -70% discount to peers. Buy rating retained. Target price eases to 16c from 17c.

This report was published on October 20, 2022.

Target price is $0.16 Current Price is $0.11 Difference: $0.05
If CV1 meets the Shaw and Partners target it will return approximately 45% (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 110.00.

Forecast for FY24:

Shaw and Partners forecasts a full year FY24 EPS of 0.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 110.00.

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

DCN    DACIAN GOLD LIMITED

Gold & Silver – Overnight Price: $0.14

Canaccord Genuity – Cessation of coverage

This report was published on October 31, 2022.

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

EOS    ELECTRO OPTIC SYSTEMS HOLDINGS LIMITED

Hardware & Equipment – Overnight Price: $0.51

Canaccord Genuity rates ((EOS)) as No Rating (-1) –

Canaccord Genuity has decided to suspend coverage of Electro Optic Systems and may resume coverage at a later date. 

This report was published on October 14, 2022.

Current Price is $0.51. Target price not assessed.

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

FWD    FLEETWOOD LIMITED

Infra & Property Developers – Overnight Price: $1.72

Canaccord Genuity – Cessation of coverage

This report was published on October 14, 2022.

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

HRL    HRL HOLDINGS LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $0.16

Canaccord Genuity – Cessation of coverage

This report was published on October 14, 2022.

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

IAG    INSURANCE AUSTRALIA GROUP LIMITED

Insurance – Overnight Price: $4.90

Jarden rates ((IAG)) as Buy (1) –

Jarden assesses the impact of the Federal Court of Australia's judgement into covid-related business interruption (BI) claims for the second insurance industry test case on the insurance companies.

Insurance Australia Group will benefit the most from the judgement due to the higher claim reserves of $975m at the end of June 2022. A -37% reduction allows for a $360m return of capital, notes Jarden.

The broker adjusts the FY24 EPS forecast by 1.8% and FY23 remains unchanged, although Jarden considers there is the possibility of more BI releases as fewer than 500 claims have been fulfilled.

A Buy rating is maintained and the target is raised 2% for $5.35 from $5.25.

This report was published on October 18, 2022.

Target price is $5.35 Current Price is $4.90 Difference: $0.45
If IAG meets the Jarden target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $5.13, suggesting upside of 3.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 23.00 cents and EPS of 30.40 cents.
At the last closing share price the estimated dividend yield is 4.69%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.12.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 30.7, implying annual growth of 117.9%.
Current consensus DPS estimate is 24.9, implying a prospective dividend yield of 5.0%.
Current consensus EPS estimate suggests the PER is 16.1.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 29.00 cents and EPS of 38.70 cents.
At the last closing share price the estimated dividend yield is 5.92%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.66.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 34.3, implying annual growth of 11.7%.
Current consensus DPS estimate is 28.8, implying a prospective dividend yield of 5.8%.
Current consensus EPS estimate suggests the PER is 14.4.

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

JIN    JUMBO INTERACTIVE LIMITED

Gaming – Overnight Price: $13.64

Goldman Sachs rates ((JIN)) as Initiation of coverage with Buy (1) –

Goldman Sachs' most preferred sub-segment for domestic gambling is Lotteries, followed by Casinos, with Wagering the least preferred.

Lotteries are the least elastic regarding consumer discretionary spending, due to a low ticket price and high return opportunity, explains the analyst.

The broker initiates coverage of Jumbo Interactive with a Buy rating on a strong growth outlook due to a pivot to a software-as-a-service (SaaS) offering and a "reasonable" valuation. A target of $15.43 is set.

The company is a reseller of Lotteries in Australia and SaaS operator of the Powered by Jumbo platform, and operates in Lottery Retailing, SaaS and Managed Services.

This report was published on October 14, 2022.

Target price is $15.43 Current Price is $13.64 Difference: $1.79
If JIN meets the Goldman Sachs target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $17.01, suggesting upside of 24.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 49.00 cents and EPS of 65.40 cents.
At the last closing share price the estimated dividend yield is 3.59%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.86.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 57.7, implying annual growth of 15.7%.
Current consensus DPS estimate is 44.3, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 23.8.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 55.00 cents and EPS of 73.80 cents.
At the last closing share price the estimated dividend yield is 4.03%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.48.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 66.6, implying annual growth of 15.4%.
Current consensus DPS estimate is 50.5, implying a prospective dividend yield of 3.7%.
Current consensus EPS estimate suggests the PER is 20.6.

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

LBY    LAYBUY GROUP HOLDINGS LIMITED

Business & Consumer Credit – Overnight Price: $0.05

Canaccord Genuity – Cessation of coverage

This report was published on October 14, 2022.

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

MLD    MACA LIMITED

Mining Sector Contracting – Overnight Price: $1.07

Canaccord Genuity – Cessation of coverage

This report was published on October 14, 2022.

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

MVP    MEDICAL DEVELOPMENTS INTERNATIONAL LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $1.58

Canaccord Genuity rates ((MVP)) as No Rating (-1) –

Canaccord Genuity has decided to suspend coverage of Medical Developments International and may resume coverage at a later date. 

This report was published on October 14, 2022.

Current Price is $1.58. Target price not assessed.
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 minus 18.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 8.63.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 3.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 45.14.

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: $8.74

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

Northern Star Resources' September-quarter production and sales result fell shy of Shaw and Partners's forecasts but management reiterated guidance, albeit skewed to the second half.

The company closed the quarter with net cash of $173m and total cash of $437m and the broker notes the company is free cash flow positive and its scheduled capital expenditure is fully funded.

Buy rating and $12.80 target price retained.

This report was published on October 20, 2022.

Target price is $12.80 Current Price is $8.74 Difference: $4.06
If NST meets the Shaw and Partners target it will return approximately 46% (excluding dividends, fees and charges).
Current consensus price target is $9.93, suggesting upside of 14.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 22.00 cents and EPS of 47.20 cents.
At the last closing share price the estimated dividend yield is 2.52%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.52.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 25.3, implying annual growth of -31.6%.
Current consensus DPS estimate is 22.1, implying a prospective dividend yield of 2.5%.
Current consensus EPS estimate suggests the PER is 34.4.

Forecast for FY24:

Shaw and Partners forecasts a full year FY24 dividend of 23.00 cents and EPS of 47.70 cents.
At the last closing share price the estimated dividend yield is 2.63%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.32.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 38.0, implying annual growth of 50.2%.
Current consensus DPS estimate is 25.6, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 22.9.

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

OLL    OPENLEARNING LIMITED

Education & Tuition – Overnight Price: $0.03

Canaccord Genuity – Cessation of coverage

This report was published on October 14, 2022.

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

OPY    OPENPAY GROUP LIMITED

Business & Consumer Credit – Overnight Price: $0.20

Canaccord Genuity – Cessation of coverage

This report was published on October 14, 2022.

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

ORG    ORIGIN ENERGY LIMITED

Infrastructure & Utilities – Overnight Price: $5.57

Jarden rates ((ORG)) as Neutral (3) –

Origin Energy updated the market for FY23 EBITDA guidance of $500-$600m, which is below the June Energy market guidance ($600-$850m) and -2.5% below consensus, however, Jarden points out it remains 8% above its own forecast. 

Wet weather in Queensland impacted on gas production and FY23 output is expected to come in at the lower end of the 680-710 PJ range.

Jarden upgrades EPS forecasts by 22.3% for FY23 and 17.1% for FY24 post the updated guidance and lower coal costs.

The Neutral rating is retained and the target price rises to $5.80 from $5.55.

This report was published on October 20, 2022.

Target price is $5.80 Current Price is $5.57 Difference: $0.23
If ORG meets the Jarden target it will return approximately 4% (excluding dividends, fees and charges).
Current consensus price target is $6.48, suggesting upside of 11.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 33.00 cents and EPS of 13.70 cents.
At the last closing share price the estimated dividend yield is 5.92%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 40.66.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 31.5, implying annual growth of N/A.
Current consensus DPS estimate is 30.1, implying a prospective dividend yield of 5.2%.
Current consensus EPS estimate suggests the PER is 18.5.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 31.00 cents and EPS of 46.10 cents.
At the last closing share price the estimated dividend yield is 5.57%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.08.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 46.3, implying annual growth of 47.0%.
Current consensus DPS estimate is 29.8, implying a prospective dividend yield of 5.1%.
Current consensus EPS estimate suggests the PER is 12.6.

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

OVN    OVENTUS MEDICAL LIMITED

Medical Equipment & Devices – Overnight Price: $0.02

Canaccord Genuity – Cessation of coverage

This report was published on October 14, 2022.

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

PBH    POINTSBET HOLDINGS LIMITED

Gaming – Overnight Price: $2.04

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

Goldman Sachs' most preferred sub-segment for domestic gambling is Lotteries, followed by Casinos, with Wagering the least preferred.

Lotteries are the least elastic regarding consumer discretionary spending, due to a low ticket price and high return opportunity, explains the analyst.

The broker initiates coverage on PointsBet Holdings with a Neutral rating given an unclear pathway to profitability and sets a $2.22 target price.

The company is an online wagering business with operations across Australia, the US and  Canada and holds an around 6% market share in the Australian digital wagering industry as of FY22 

The major recent focus for the company, ahead of the Australian business, has been about gaining market presence and improving delivery in the US, notes Goldman Sachs.

This report was published on October 14, 2022.

Target price is $2.22 Current Price is $2.04 Difference: $0.18
If PBH meets the Goldman Sachs target it will return approximately 9% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 84.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 2.42.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 61.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 3.32.

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

PCK    PAINCHEK LIMITED

Medical Equipment & Devices – Overnight Price: $0.03

Canaccord Genuity rates ((PCK)) as No Rating (-1) –

Canaccord Genuity has decided to suspend coverage of PainChek and may resume coverage at a later date. 

This report was published on October 14, 2022.

Current Price is $0.03. Target price not assessed.

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: $4.91

Jarden rates ((PDL)) as Neutral (3) –

Jarden notes September quarter outflows of -$2.3bn were below its forecast of $0.4bn inflows and below consensus of -$0.4bn in outflows, although the quarter marked an improvement on the June quarter's -$4.2bn outflow.

FUM also came in lower at $104.5bn, some -4.5% to -5% below the broker's forecast, as a result of outflows and performance.

The Perpetual ((PPT) takeover is moving to completion in January 2023. Jarden adjusts earnings forecasts by -1% for FY22 and -7.4% for FY23.

A Neutral rating is retained the target is lowered to $3.95 from $4.05.

This report was published on October 20, 2022.

Target price is $3.95 Current Price is $4.91 Difference: minus $0.96 (current price is over target).
If PDL meets the Jarden target it will return approximately minus 20% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $5.06, suggesting upside of 1.6%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 41.80 cents and EPS of 44.20 cents.
At the last closing share price the estimated dividend yield is 8.51%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.11.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 46.9, implying annual growth of -9.7%.
Current consensus DPS estimate is 43.7, implying a prospective dividend yield of 8.8%.
Current consensus EPS estimate suggests the PER is 10.6.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 22.30 cents and EPS of 24.80 cents.
At the last closing share price the estimated dividend yield is 4.54%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.80.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 34.0, implying annual growth of -27.5%.
Current consensus DPS estimate is 30.5, implying a prospective dividend yield of 6.1%.
Current consensus EPS estimate suggests the PER is 14.6.

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

PPT    PERPETUAL LIMITED

Wealth Management & Investments – Overnight Price: $24.90

Jarden rates ((PPT)) as Neutral (3) –

Perpetual reported Q1 results which were mixed, notes Jarden. FUA proved in line with expectations, while the company reported fund outflows of -$1.7bn, lower than consensus and the broker's forecast.

The analyst considers there are ongoing risks to the earnings outlook for Perpetual with possible further adverse changes in fund flows, cost pressures and a miss on revenue.

EPS forecasts are adjusted by -7.2% for FY23 and -8.7% for FY24. The Neutral rating is retained and the target price decreases to $22.00 from $23.00.

This report was published on October 20, 2022.

Target price is $22.00 Current Price is $24.90 Difference: minus $2.9 (current price is over target).
If PPT meets the Jarden target it will return approximately minus 12% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $30.44, suggesting upside of 21.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 151.80 cents and EPS of 175.40 cents.
At the last closing share price the estimated dividend yield is 6.10%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.20.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 205.5, implying annual growth of 14.4%.
Current consensus DPS estimate is 168.3, implying a prospective dividend yield of 6.7%.
Current consensus EPS estimate suggests the PER is 12.2.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 160.40 cents and EPS of 185.20 cents.
At the last closing share price the estimated dividend yield is 6.44%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.44.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 230.5, implying annual growth of 12.2%.
Current consensus DPS estimate is 186.0, implying a prospective dividend yield of 7.4%.
Current consensus EPS estimate suggests the PER is 10.9.

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

PYG    PAYGROUP LIMITED

Cloud services – Overnight Price: $0.98

Canaccord Genuity – Cessation of coverage

This report was published on October 14, 2022.

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

QBE    QBE INSURANCE GROUP LIMITED

Insurance – Overnight Price: $12.24

Jarden rates ((QBE)) as Buy (1) –

Jarden assesses the impact of the Federal Court of Australia's judgement into covid-related business interruption (BI) claims for the second insurance industry test case on the insurance companies.

QBE Insurance business covered pandemics for the RI program in FY20 which leads Jarden to consider the US$150m of BI provisions  have a wider scope of covid-realted risk margins.

Accordingly, the company needs more clarity on the legal outcomes of the BI claims in both Australia and the UK, with the analyst seeing a potential provision release in the 2H23.

Jarden retains earnings forecasts and notes any release could be used to offset inflationary pressures and broader claim reserves.

A Buy rating and the $17.95 target are retained.

This report was published on October 18, 2022.

Target price is $17.95 Current Price is $12.24 Difference: $5.71
If QBE meets the Jarden target it will return approximately 47% (excluding dividends, fees and charges).
Current consensus price target is $15.65, suggesting upside of 26.2%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 78.07 cents and EPS of 79.63 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 15.37.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 84.0, implying annual growth of N/A.
Current consensus DPS estimate is 61.7, implying a prospective dividend yield of 5.0%.
Current consensus EPS estimate suggests the PER is 14.8.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 124.91 cents and EPS of 158.55 cents.
At the last closing share price the estimated dividend yield is 10.21%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.72.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 152.5, implying annual growth of 81.5%.
Current consensus DPS estimate is 114.1, implying a prospective dividend yield of 9.2%.
Current consensus EPS estimate suggests the PER is 8.1.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

RCL    READCLOUD LIMITED

Education & Tuition – Overnight Price: $0.12

Canaccord Genuity rates ((RCL)) as No Rating (-1) –

Canaccord Genuity has decided to suspend coverage of ReadCloud and may resume coverage at a later date. 

This report was published on October 14, 2022.

Current Price is $0.12. Target price not assessed.

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

RVR    RED RIVER RESOURCES LIMITED

Industrial Metals – Overnight Price: $0.07

Canaccord Genuity – Cessation of coverage

This report was published on October 14, 2022.

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: $2.91

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

Goldman Sachs' most preferred sub-segment for domestic gambling is Lotteries, followed by Casinos, with Wagering the least preferred.

Lotteries are the least elastic regarding consumer discretionary spending, due to a low ticket price and high return opportunity, explains the analyst.

The broker retains its Neutral rating for Star Entertainment despite weaker valuations due to ongoing regulatory and competition risks. The target is reduced to $2.90 from $3.40.

Regulatory uncertainties pertain to reviews across both the Sydney and Queensland assets, which have so far reduced the share price by -41% since mid-2021, believes Goldman Sachs.

This report was published on October 14, 2022.

Target price is $2.90 Current Price is $2.91 Difference: minus $0.01 (current price is over target).
If SGR meets the Goldman Sachs target it will return approximately minus 0% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $3.41, suggesting upside of 14.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 9.00 cents and EPS of 15.10 cents.
At the last closing share price the estimated dividend yield is 3.09%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.27.

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 3.0%.
Current consensus EPS estimate suggests the PER is 29.4.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 12.00 cents and EPS of 14.00 cents.
At the last closing share price the estimated dividend yield is 4.12%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.79.

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 4.3%.
Current consensus EPS estimate suggests the PER is 17.6.

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

SKC    SKYCITY ENTERTAINMENT GROUP LIMITED

Gaming – Overnight Price: $2.61

Goldman Sachs rates ((SKC)) as Upgrade to Buy from Neutral (1) –

Goldman Sachs' most preferred sub-segment for domestic gambling is Lotteries, followed by Casinos, with Wagering the least preferred.

Lotteries are the least elastic regarding consumer discretionary spending, due to a low ticket price and high return opportunity, explains the analyst.

The broker upgrades its rating for SkyCity Entertainment to Buy from Neutral for potential market share shifts and regulatory impacts, which suggest the company remains well protected. The target is increased to NZ$3.40 from NZ$3.20.

The company operates five casinos across Australia and New Zealand and earns around 75% of revenue from gaming operations, explains the analyst.

This report was published on October 14, 2022.

Current Price is $2.61. Target price not assessed.
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 12.12 cents and EPS of 15.15 cents.
At the last closing share price the estimated dividend yield is 4.64%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.22.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 5.69 cents and EPS of 17.45 cents.
At the last closing share price the estimated dividend yield is 2.18%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.96.

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

SPT    SPLITIT PAYMENTS LIMITED

Business & Consumer Credit – Overnight Price: $0.12

Canaccord Genuity rates ((SPT)) as No Rating (-1) –

Canaccord Genuity has decided to suspend coverage of Splitit Payments and may resume coverage at a later date. 

This report was published on October 14, 2022.

Current Price is $0.12. Target price not assessed.

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

SUN    SUNCORP GROUP LIMITED

Insurance – Overnight Price: $11.35

Jarden rates ((SUN)) as Buy (1) –

Jarden assesses the impact of the Federal Court of Australia's judgement into covid-related business interruption (BI) claims for the second insurance industry test case on the insurance companies.

Suncorp Group announced the "majority" of its $179m BI-provision will be released with the 1H23 results.

The broker assesses around two-thirds or $120m of the reserves will be available and result in 7.4% increase in the FY23 forecast earnings, allowing for a 65c dividend.

The company also announced around 100 claims have come forth from recent wet-weather events across Tasmania, Victoria and NSW, which at an estimated average cost of $20,000 per claim, equates to -$20m currently.

Jarden retains the current CAT budget in line with Suncorp Group's guidance of $1.160bn. The target is raised 1% to $12.80 from $12.65 and the Buy rating is maintained.

This report was published on October 18, 2022.

Target price is $12.80 Current Price is $11.35 Difference: $1.45
If SUN meets the Jarden target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $13.14, suggesting upside of 13.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 65.00 cents and EPS of 93.90 cents.
At the last closing share price the estimated dividend yield is 5.73%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.09.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 91.3, implying annual growth of 69.7%.
Current consensus DPS estimate is 68.7, implying a prospective dividend yield of 6.0%.
Current consensus EPS estimate suggests the PER is 12.6.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 77.70 cents and EPS of 95.30 cents.
At the last closing share price the estimated dividend yield is 6.85%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.91.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 100.6, implying annual growth of 10.2%.
Current consensus DPS estimate is 77.2, implying a prospective dividend yield of 6.7%.
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

SXY    SENEX ENERGY LIMITED

Crude Oil – Overnight Price: $4.60

Canaccord Genuity – Cessation of coverage

This report was published on October 14, 2022.

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

TAH    TABCORP HOLDINGS LIMITED

Gaming – Overnight Price: $0.97

Goldman Sachs rates ((TAH)) as Downgrade to Sell from Neutral (5) –

Goldman Sachs' most preferred sub-segment for domestic gambling is Lotteries, followed by Casinos, with Wagering the least preferred.

Lotteries are the least elastic regarding consumer discretionary spending, due to a low ticket price and high return opportunity, explains the analyst.

The broker downgrades its rating for Tabcorp Holdings to Sell from Neutral due to short-term challenges for the wagering industry. There's also considered to be risks around competition and the company's execution of its digital strategy.

The target price falls to $0.80 from $1.08.

This report was published on October 14, 2022.

Target price is $0.80 Current Price is $0.97 Difference: minus $0.167 (current price is over target).
If TAH meets the Goldman Sachs target it will return approximately minus 17% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $1.06, suggesting upside of 9.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 2.00 cents and EPS of 4.00 cents.
At the last closing share price the estimated dividend yield is 2.07%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.17.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 3.9, implying annual growth of -98.7%.
Current consensus DPS estimate is 2.3, implying a prospective dividend yield of 2.4%.
Current consensus EPS estimate suggests the PER is 24.8.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 2.00 cents and EPS of 4.00 cents.
At the last closing share price the estimated dividend yield is 2.07%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.17.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 4.4, implying annual growth of 12.8%.
Current consensus DPS estimate is 2.6, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 22.0.

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

TLC    LOTTERY CORPORATION LIMITED

Gaming – Overnight Price: $4.27

Goldman Sachs rates ((TLC)) as Initiation of coverage with Sell (5) –

Goldman Sachs' most preferred sub-segment for domestic gambling is Lotteries, followed by Casinos, with Wagering the least preferred.

Lotteries are the least elastic regarding consumer discretionary spending, due to a low ticket price and high return opportunity, explains the analyst.

However, both short-term expectations and valuation are demanding for Lottery Corp and the broker initiates coverage with a Sell rating and sets a $3.50 target price. The volatility of Jackpot games is also underappreciated by the market, according to the analyst.

Lottery Corp is the exclusive licensed Lottery operator in all states of Australia outside of WA and is a Keno operator in the Eastern seaboard and ACT.

This report was published on October 14, 2022.

Target price is $3.50 Current Price is $4.27 Difference: minus $0.77 (current price is over target).
If TLC meets the Goldman Sachs target it will return approximately minus 18% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $4.90, suggesting upside of 14.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 11.40 cents and EPS of 14.30 cents.
At the last closing share price the estimated dividend yield is 2.67%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.86.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.4, implying annual growth of -1.1%.
Current consensus DPS estimate is 11.6, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 27.7.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 11.95 cents and EPS of 14.90 cents.
At the last closing share price the estimated dividend yield is 2.80%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.66.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.9, implying annual growth of 9.7%.
Current consensus DPS estimate is 14.1, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 25.3.

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

UBI    UNIVERSAL BIOSENSORS INC

Medical Equipment & Devices – Overnight Price: $0.28

Canaccord Genuity rates ((UBI)) as No Rating (-1) –

Canaccord Genuity has decided to suspend coverage of Universal Biosensors and may resume coverage at a later date. 

This report was published on October 14, 2022.

Current Price is $0.28. Target price not assessed.

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

UWL    UNITI GROUP LIMITED

Telecommunication – Overnight Price: $4.99

Canaccord Genuity – Cessation of coverage

This report was published on October 14, 2022.

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

VTI    VISIONEERING TECHNOLOGIES INC

Medical Equipment & Devices – Overnight Price: $0.27

Canaccord Genuity – Cessation of coverage

This report was published on October 14, 2022.

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

WHC    WHITEHAVEN COAL LIMITED

Coal – Overnight Price: $9.03

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

Whitehaven Coal had a soft start to the year according to Goldman Sachs, with mine planning and wet weather impacts driving a quarter-on-quarter coal production decline of -37%. Stronger realised thermal pricing supported strong cashflow of $1.5bn.

The company will seek shareholder approval to refresh the buyback program to acquire up to 240m shares in aggregate. While full year guidance is retained, Goldman Sachs notes Narrabri is expected at the top end of range and Maules Creek at the lower end. 

The Neutral rating is retained and the target price increases to $9.70 from $9.60.

This report was published on October 20, 2022.

Target price is $9.70 Current Price is $9.03 Difference: $0.67
If WHC meets the Goldman Sachs target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $11.44, suggesting upside of 26.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 84.00 cents and EPS of 361.00 cents.
At the last closing share price the estimated dividend yield is 9.30%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 2.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 460.2, implying annual growth of 132.9%.
Current consensus DPS estimate is 90.5, implying a prospective dividend yield of 10.0%.
Current consensus EPS estimate suggests the PER is 2.0.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 53.00 cents and EPS of 191.00 cents.
At the last closing share price the estimated dividend yield is 5.87%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.73.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 287.7, implying annual growth of -37.5%.
Current consensus DPS estimate is 103.8, implying a prospective dividend yield of 11.5%.
Current consensus EPS estimate suggests the PER is 3.1.

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

Whitehaven Coal's September-quarter production fell shy of Shaw and Partners's expectations as poor weather and labour shortages continued to impact operations.

But the average selling price was a winner and the company generated $1.5bn in cash in the quarter. Guidance was reiterated.

Whtiehaven closed the quarter with $1.9bn cash in the kitty and with the buyback nearly complete, the broker expects another 20% to 25% buyback will be announced at the annual general meeting.

The broker expects the thermal coal price to remain elevated throughout the northern winter and production to remain firm.

Buy rating retained. Target price is $15.

This report was published on October 20, 2022.

Target price is $15.00 Current Price is $9.03 Difference: $5.97
If WHC meets the Shaw and Partners target it will return approximately 66% (excluding dividends, fees and charges).
Current consensus price target is $11.44, suggesting upside of 26.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 122.00 cents and EPS of 349.00 cents.
At the last closing share price the estimated dividend yield is 13.51%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 2.59.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 460.2, implying annual growth of 132.9%.
Current consensus DPS estimate is 90.5, implying a prospective dividend yield of 10.0%.
Current consensus EPS estimate suggests the PER is 2.0.

Forecast for FY24:

Shaw and Partners forecasts a full year FY24 dividend of 78.00 cents and EPS of 221.50 cents.
At the last closing share price the estimated dividend yield is 8.64%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.08.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 287.7, implying annual growth of -37.5%.
Current consensus DPS estimate is 103.8, implying a prospective dividend yield of 11.5%.
Current consensus EPS estimate suggests the PER is 3.1.

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

WSA    WESTERN AREAS LIMITED

Nickel – Overnight Price: $3.86

Canaccord Genuity – Cessation of coverage

This report was published on October 14, 2022.

Forecast for FY22:

Current consensus EPS estimate is 21.4, implying annual growth of N/A.
Current consensus DPS estimate is 0.3, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY23:

Current consensus EPS estimate is 15.4, implying annual growth of -28.0%.
Current consensus DPS estimate is 0.3, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

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

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