Australian Broker Call *Extra* Edition – Nov 16, 2022

This story features A2 MILK COMPANY LIMITED, and other companies. For more info SHARE ANALYSIS: A2M

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)

A2M (2)   APM   AUB   BCB   BHP   BSL   BVS (2)   CGF   CGS   CMM   CSR   CTP   DDR   DMP   DTL   EMV   GMA   GMG   IMD   MAQ   MOZ   NTO   OZL   RDY   RIO   S32   SFR   SGM   SND   WOW (2)  

A2M    A2 MILK COMPANY LIMITED

Dairy – Overnight Price: $5.87

Bell Potter rates ((A2M)) as Buy (1) –

Bell Potter considers the FDA approval for a2 Milk Co to sell its Stages 1 and 2 infant milk product until January 2023.

Management have indicated 1m tins in the 2H23, which is viewed as reasonable by the broker, while the company highlights margins will be lower than the average from higher costs to market and sell in the US.

Bell Potter adjusts earnings forecasts by 2% and 1% respectively for FY23 and FY24. The target is raised to $6.80 from $6.60 and the Buy rating is unchanged.

This report was published on November 4, 2022.

Target price is $6.80 Current Price is $5.87 Difference: $0.93
If A2M meets the Bell Potter target it will return approximately 16% (excluding dividends, fees and charges).
Current consensus price target is $5.00, suggesting downside of -14.8%(ex-dividends)
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 17.14 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 34.25.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.1, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 32.4.

Forecast for FY24:

Bell Potter forecasts a full year FY24 dividend of 0.00 cents and EPS of 19.61 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.93.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 23.3, implying annual growth of 28.7%.
Current consensus DPS estimate is 3.1, implying a prospective dividend yield of 0.5%.
Current consensus EPS estimate suggests the PER is 25.2.

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: -0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

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Jarden rates ((A2M)) as Neutral (3) –

a2 Milk Co reported the company received FDA approval to import its stages 1 and 2 infant formula into the US in the period up to January 2023. The stage 3 product doesn't need FDA approval, notes Jarden.

Although management envisages 1m cans into the US in FY23, the margins are likely be lower than average due to marketing and start-up costs.

Jarden places an 80% probability that a2 Milk Co will achieve 1m tins only in FY23, due to the challenging nature of the market.

Accordingly, earnings forecasts are revised up by 6% for FY23 and 4% for FY24 and the target is raised 5% to NZ$5.70.

A Neutral rating is maintained.

This report was published on November 4, 2022.

Current Price is $5.87. Target price not assessed.
Current consensus price target is $5.00, suggesting downside of -14.8%(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 17.96 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 32.68.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.1, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 32.4.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 0.00 cents and EPS of 20.35 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.85.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 23.3, implying annual growth of 28.7%.
Current consensus DPS estimate is 3.1, implying a prospective dividend yield of 0.5%.
Current consensus EPS estimate suggests the PER is 25.2.

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: -0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

APM    APM HUMAN SERVICES INTERNATIONAL LIMITED

Healthcare – Overnight Price: $3.09

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

Goldman Sachs assesses the completed $240m acquisition of Equus Workforce Solutions by APM Human Services International.

Updating for the purchase as well as adjusted foreign exchange and interest rate assumptions, the broker's EPS forecasts increase by 2.6% and 2.7%, respectively, for FY23 and FY24.

The extension of the Disability Employment Services program until June 2025 is expected to boost the company's market share as contracts are moved to "high performing providers".

A Buy rating is retained and the price target moves to $4.30 from $4.20.

This report was published on November 3, 2022.

Target price is $4.30 Current Price is $3.09 Difference: $1.21
If APM meets the Goldman Sachs target it will return approximately 39% (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 11.00 cents and EPS of 21.00 cents.
At the last closing share price the estimated dividend yield is 3.56%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.71.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 13.00 cents and EPS of 27.00 cents.
At the last closing share price the estimated dividend yield is 4.21%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.44.

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

AUB    AUB GROUP LIMITED

Diversified Financials – Overnight Price: $22.32

Jarden rates ((AUB)) as Buy (1) –

Jarden views the 1Q23 trading update from AUB Group as stronger than anticipated with Tysers performing ahead of expectations.

Management offered FY23 guidance of between $107.5m-$115m, including a $42.5m-$52.2m contribution from Tysers.

Earnings forecasts are marginally adjusted for the guidance update by -1.9% for FY23 and -0.1% for FY24.

The target is revised to $26.15 from $27.50 and a Buy rating is retained.

This report was published on November 7, 2022.

Target price is $26.15 Current Price is $22.32 Difference: $3.83
If AUB meets the Jarden target it will return approximately 17% (excluding dividends, fees and charges).
Current consensus price target is $25.24, suggesting upside of 13.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 68.50 cents and EPS of 116.30 cents.
At the last closing share price the estimated dividend yield is 3.07%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.19.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 112.1, implying annual growth of 6.2%.
Current consensus DPS estimate is 66.3, implying a prospective dividend yield of 3.0%.
Current consensus EPS estimate suggests the PER is 19.9.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 94.60 cents and EPS of 152.20 cents.
At the last closing share price the estimated dividend yield is 4.24%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.66.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 127.1, implying annual growth of 13.4%.
Current consensus DPS estimate is 77.3, implying a prospective dividend yield of 3.5%.
Current consensus EPS estimate suggests the PER is 17.6.

Market Sentiment: 1.0
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: $0.28

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

The $76m raised in the first tranche of Bowen Coking Coal's $85m capital raising will allow the company to de-risk its ramp up phase. 

Shaw and Partners highlights funds will be deployed for prepayments on port and rail capacity, with a third retained in working capital and for growth options. 

The broker notes early port and rail payments will equate to stronger cash flow next year. 

The Buy rating is retained and the target price decreases to $0.49 from $0.51, on dilution from the capital raise.

This report was published on November 7, 2022.

Target price is $0.49 Current Price is $0.28 Difference: $0.21
If BCB meets the Shaw and Partners target it will return approximately 75% (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 10.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 2.62.

Forecast for FY24:

Shaw and Partners forecasts a full year FY24 dividend of 3.00 cents and EPS of 11.80 cents.
At the last closing share price the estimated dividend yield is 10.71%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 2.37.

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

BHP    BHP GROUP LIMITED

Bulks – Overnight Price: $43.94

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

The commodities team at Goldman Sachs lowers its 2023 copper price forecasts to US$3.78/lb from US$4/lb due to weak Chinese property and European industry demand. The long run (2026) forecast is unchanged at US$4/lb.

The broker suggests either BHP Group or Rio Tinto for investors looking for copper exposure.

The target for BHP Group falls to $42.30 from $42.50. Buy.

Apart from existing copper assets and an around US$20bn copper project pipeline (mainly located in Chile), BHP is looking to grow its portfolio further via a takeover of OZ Minerals ((OZL)).

This report was published on November 7, 2022.

Target price is $42.30 Current Price is $43.94 Difference: minus $1.64 (current price is over target).
If BHP meets the Goldman Sachs target it will return approximately minus 4% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $41.95, suggesting downside of -4.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 234.05 cents and EPS of 352.51 cents.
At the last closing share price the estimated dividend yield is 5.33%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.47.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 426.8, implying annual growth of N/A.
Current consensus DPS estimate is 309.3, implying a prospective dividend yield of 7.0%.
Current consensus EPS estimate suggests the PER is 10.3.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 191.24 cents and EPS of 345.37 cents.
At the last closing share price the estimated dividend yield is 4.35%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.72.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 401.6, implying annual growth of -5.9%.
Current consensus DPS estimate is 293.9, implying a prospective dividend yield of 6.7%.
Current consensus EPS estimate suggests the PER is 10.9.

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

BSL    BLUESCOPE STEEL LIMITED

Steel & Scrap – Overnight Price: $16.94

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

Jarden reviews BlueScope Steel and Sims Metals ((SGM)) post the weakness in US company steel share prices and concerns about weakening US steel prices post the Federal Reserve interest rate rise.

The broker points to an Argus Media report which suggests BlueScope Steel's US steel spread to be at US$341/t compared to US$373/t in the previous week.

Post the China Communist Party Conference, the HRC price has weakened but is lacking direction with no definitive economic policy outlook, the broker suggests.

Jarden notes the company is 66% through its $1.137bn buyback and retains an Overweight rating and a $19.20 target.

This report was published on November 4, 2022.

Target price is $19.20 Current Price is $16.94 Difference: $2.26
If BSL meets the Jarden target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $20.41, suggesting upside of 20.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 50.00 cents and EPS of 244.10 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 6.94.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 242.0, implying annual growth of -57.7%.
Current consensus DPS estimate is 50.0, implying a prospective dividend yield of 3.0%.
Current consensus EPS estimate suggests the PER is 7.0.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 50.00 cents and EPS of 174.70 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 9.70.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 203.1, implying annual growth of -16.1%.
Current consensus DPS estimate is 50.0, implying a prospective dividend yield of 3.0%.
Current consensus EPS estimate suggests the PER is 8.3.

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

BVS    BRAVURA SOLUTIONS LIMITED

Wealth Management & Investments – Overnight Price: $0.78

Jarden rates ((BVS)) as Buy (1) –

Bravura Solutions provided a disappointing update for FY23 with EBITDA expected in the range of $10m-$15m versus Jarden's forecast of $41m.

A hefty rise in operating expenses (up 16%-20%) on the previous period will lead to lower cash flow generation.

Jarden lowered EPS forecasts by -111.3% for FY23 and -42.9% for FY24, and the analyst notes more clarity is required in the strategic review as well as costs and revenues in the future.

The Buy rating is retained, although the broker highlights the "risk" for investors and the target is lowered to $1.01 from $2.50.

This report was published on November 4, 2022.

Target price is $1.01 Current Price is $0.78 Difference: $0.23
If BVS meets the Jarden target it will return approximately 29% (excluding dividends, fees and charges).
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 minus 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 78.00.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 0.00 cents and EPS of 3.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.64.

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

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Wilsons rates ((BVS)) as Underweight (5) –

Bravura Solutions reported a disappointing update with the stock price falling -52% highlights Wilsons.

The analyst remains concerned about both structural (product cannibalisation) and cyclical (Brexit and the pandemic) headwinds and notes the problems are "both material and complex" and yet they need to be addressed swiftly and efficiently.

The next opportunity to assess the new CEO's Strategic Review will be at the upcoming November 22 AGM. Earnings forecasts are lowered by -73% and -74% for FY23 and FY24, respectively and the dividend has been suspended.

An Underweight rating is retained and the target is lowered -56% to $0.53.

This report was published on November 7, 2022.

Target price is $0.53 Current Price is $0.78 Difference: minus $0.25 (current price is over target).
If BVS meets the Wilsons target it will return approximately minus 32% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 1.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 41.05.

Forecast for FY24:

Wilsons forecasts a full year FY24 EPS of minus 3.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 21.08.

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

CGF    CHALLENGER LIMITED

Wealth Management & Investments – Overnight Price: $7.09

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

Challenger reported record annuity sales for the 1Q23 quarter and Jarden considers there is more upside for the October quarter and accordingly raises the FY23 annuity sales by 6% for FY23.

Jarden adjusts earnings forecasts for the updated strong performance by 1% for FY23 and 1.3% for FY24.

An Overweight rating and the target is raised to $7.17 from $6.95.

This report was published on November 4, 2022.

Target price is $7.17 Current Price is $7.09 Difference: $0.08
If CGF meets the Jarden target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $6.87, suggesting downside of -3.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 25.00 cents and EPS of 49.20 cents.
At the last closing share price the estimated dividend yield is 3.53%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.41.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 45.1, implying annual growth of 20.1%.
Current consensus DPS estimate is 25.2, implying a prospective dividend yield of 3.6%.
Current consensus EPS estimate suggests the PER is 15.7.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 29.50 cents and EPS of 58.20 cents.
At the last closing share price the estimated dividend yield is 4.16%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.18.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 50.6, implying annual growth of 12.2%.
Current consensus DPS estimate is 28.8, implying a prospective dividend yield of 4.1%.
Current consensus EPS estimate suggests the PER is 14.0.

Market Sentiment: 0.1
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: $1.90

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

At its AGM, Cogstate lowered 1H guidance for clinical trial revenue due to delays with patient enrollment in key alzheimer’s disease studies, which are expected to continue in the 2Q.

As stronger revenue is expected by management in the 2H; FY23 guidance for earnings has been maintained.

While the broker maintains its Buy rating, the target falls to $2.05 from $2.15 as FY23-25 forecasts fall on the softer clinical trial contract revenue.

This report was published on November 7, 2022.

Target price is $2.05 Current Price is $1.90 Difference: $0.15
If CGS meets the Bell Potter target it will return approximately 8% (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 3.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 50.00.

Forecast for FY24:

Bell Potter forecasts a full year FY24 dividend of 0.00 cents and EPS of 4.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 39.58.

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

CMM    CAPRICORN METALS LIMITED

Gold & Silver – Overnight Price: $4.29

Canaccord Genuity rates ((CMM)) as Hold (3) –

Capricorn Metals' Mt Gibson gold project resource has grown 32% to 2.8m ounces, including 21.m ounces of indicated resource. Canaccord Genuity expects this will provide a strong foundation for the maiden reserve, expected later in the quarter. 

The broker has also increased its life of mine mining inventory to 1.3m ounces, and extended assumed mine life to 11.5 years. 

The Buy rating is retained and the target price increases to $4.15 from $4.00.

This report was published on November 8, 2022.

Target price is $4.15 Current Price is $4.29 Difference: minus $0.14 (current price is over target).
If CMM meets the Canaccord Genuity target it will return approximately minus 3% (excluding dividends, fees and charges – negative figures indicate an expected loss).
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 27.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.89.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of 30.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.30.

Market Sentiment: 0.0
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

Goldman Sachs rates ((CSR)) as No Rating (-1) –

CSR's 1H results revealed to Goldman Sachs resilient demand and strong price/cost management within the Building Products segment.

A record 15.3% margin provided a contrast to escalating housing market and inflation concerns. The Aluminium segment underperformed.

Management was able to offset cost inflation via price rises (which accounted for the majority of the 11% revenue growth) and efficiency initiatives, explains the analyst, 

The net impact of 4% upgrades to Building Products and reduced Aluminium earnings is a -3% decrease in the broker's FY24 forecast earnings (EBIT), while FY25 earnings estimates were unchanged. 

The target rises by 5% to $5.40. Buy.

This report was published on November 7, 2022.

Target price is $5.40 Current Price is $4.63 Difference: $0.77
If CSR meets the Goldman Sachs target it will return approximately 17% (excluding dividends, fees and charges).
Current consensus price target is $5.47, suggesting upside of 18.1%(ex-dividends)
The company's fiscal year ends in March.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 32.00 cents and EPS of 40.00 cents.
At the last closing share price the estimated dividend yield is 6.91%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.58.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 44.0, implying annual growth of -21.2%.
Current consensus DPS estimate is 34.7, implying a prospective dividend yield of 7.5%.
Current consensus EPS estimate suggests the PER is 10.5.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 29.00 cents and EPS of 37.00 cents.
At the last closing share price the estimated dividend yield is 6.26%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.51.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 39.1, implying annual growth of -11.1%.
Current consensus DPS estimate is 32.2, implying a prospective dividend yield of 7.0%.
Current consensus EPS estimate suggests the PER is 11.8.

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

CTP    CENTRAL PETROLEUM LIMITED

NatGas – Overnight Price: $0.08

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

Bell Potter highlights an outage at the Northern Gas Pipeline in early September reduced gas production for Central Petroleum, with group sales down -2.5% for the 1Q23 on the June quarter.

Despite the outage, the company achieved energy prices of $8.12GJe, only marginally lower than the previous quarter's results of $8.41/GJe.

The broker's forecasts adjust slightly for FY24 with no change to FY23. Bell Potter views Central Petroleum as a beneficiary of high gas prices in the east coast market.

The target is lower to 8.5c from 11c and the Hold rating is retained.

This report was published on November 3, 2022.

Target price is $0.09 Current Price is $0.08 Difference: $0.005
If CTP meets the Bell Potter target it will return approximately 6% (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 0.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 80.00.

Forecast for FY24:

Bell Potter forecasts a full year FY24 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 40.00.

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

DDR    DICKER DATA LIMITED

Hardware & Equipment – Overnight Price: $10.41

Goldman Sachs rates ((DDR)) as Initiation of coverage with Neutral (3) –

Goldman Sachs believes Dicker Data, Macquarie Telecom and Buy-rated Data#3 are strategically positioned to capitalise on long-term structural tailwinds for IT spending in A&NZ.

All three have seasoned management teams, strong competitive positions and a long track record of execution, according to the analysts. Growing revenue streams from software spending and managed IT services are also noted.

The broker initiates coverage on Dicker Data, a top three distributor of IT equipment in A&NZ to more than 8,000 business-to-business (B2B) re-seller partners. A $12.25 target price is set.

The company has a competitive advantage in value-added service, reliability and agility versus large offshore peers, according to the analyst. Recurring revenue via the Software segment is expected to contribute 34% of FY25 sales, up from 25% today.

Goldman Sachs cautions 75% of Dicker Data's revenue base is from largely non-recurring Hardware sales, which could suffer in an economic slowdown, and begins coverage with a Neutral rating.

This report was published on November 2, 2022.

Target price is $12.25 Current Price is $10.41 Difference: $1.84
If DDR meets the Goldman Sachs target it will return approximately 18% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 43.60 cents and EPS of 44.20 cents.
At the last closing share price the estimated dividend yield is 4.19%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.55.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 49.70 cents and EPS of 50.50 cents.
At the last closing share price the estimated dividend yield is 4.77%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.61.

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

DMP    DOMINO'S PIZZA ENTERPRISES LIMITED

Food, Beverages & Tobacco – Overnight Price: $64.14

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

Domino's Pizza Enterprises trading and guidance update came in below expectations, notes Goldman Sachs.

Although sales for the first 17 weeks of FY23 met forecasts, management flagged FY23 earnings will come in slightly above FY22, but including the foreign exchange -$7m headwind, the results will be significantly below both the broker's and consensus estimates.

Higher costs continue to weigh on earnings and new store roll-outs were slower than expected.

Management is including the SEA acquisition in guidance, however Goldman Sachs excludes the company in its downgraded forecasts of -5.5% and -4.5% for FY23 and FY24, respectively, because the deal has not closed.

The target is adjusted to $60 from $62.90 and a Neutral rating is maintained.

This report was published on November 4, 2022.

Target price is $60.00 Current Price is $64.14 Difference: minus $4.14 (current price is over target).
If DMP meets the Goldman Sachs target it will return approximately minus 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $75.50, suggesting upside of 17.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 149.00 cents and EPS of 186.00 cents.
At the last closing share price the estimated dividend yield is 2.32%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 34.48.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 187.9, implying annual growth of 2.5%.
Current consensus DPS estimate is 154.1, implying a prospective dividend yield of 2.4%.
Current consensus EPS estimate suggests the PER is 34.1.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 179.00 cents and EPS of 219.00 cents.
At the last closing share price the estimated dividend yield is 2.79%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.29.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 244.1, implying annual growth of 29.9%.
Current consensus DPS estimate is 200.2, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 26.3.

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

DTL    DATA#3 LIMITED.

IT & Support – Overnight Price: $6.75

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

Goldman Sachs believes Data#3, Dicker Data and Macquarie Telecom are strategically positioned to capitalise on long-term structural tailwinds for IT spending in A&NZ.

All three have seasoned management teams, strong competitive positions and a long track record of execution, according to the analysts. Growing revenue streams from software spending and managed IT services are also noted.

The broker initiates coverage on Data#3, with the only Buy rating among the three, noting a link to several long-term structural growth tailwinds including public cloud adoption, digital transformation spending and managed IT services. An $8.95 target price is set.

Goldman Sachs believes the company has reached a gross profit margin inflection point after years of declines. It's anticipated the gross margin will expand to 10.4% in FY25 from 10% in FY22.

This report was published on November 1, 2022.

Target price is $8.95 Current Price is $6.75 Difference: $2.2
If DTL meets the Goldman Sachs target it will return approximately 33% (excluding dividends, fees and charges).
Current consensus price target is $6.94, suggesting upside of 2.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 22.60 cents and EPS of 24.80 cents.
At the last closing share price the estimated dividend yield is 3.35%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.22.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 22.7, implying annual growth of 15.8%.
Current consensus DPS estimate is 20.3, implying a prospective dividend yield of 3.0%.
Current consensus EPS estimate suggests the PER is 29.7.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 26.30 cents and EPS of 29.00 cents.
At the last closing share price the estimated dividend yield is 3.90%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.28.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 26.0, implying annual growth of 14.5%.
Current consensus DPS estimate is 22.8, implying a prospective dividend yield of 3.4%.
Current consensus EPS estimate suggests the PER is 26.0.

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

EMV    EMVISION MEDICAL DEVICES LIMITED

Medical Equipment & Devices – Overnight Price: $1.89

Bell Potter rates ((EMV)) as Initiation of coverage with Speculative Buy (1) –

Bell Potter initiates coverage with a Speculative Buy rating and $2.10 target for EMvision Medical Devices, which has two brain-scanning devices to allowing rapid, point-of-care diagnosis and monitoring of stroke.

The broker's sales forecasts for Australia, Europe and the US are contingent on results from the multi-centre clinical trial, regulatory
approvals (TGA, CE-IVD, FDA) and execution of the commercial strategy.

The company must demonstrate diagnostic accuracy compared with existing CT technology.

The trial will take place over the next 12 months, in the wake of the proof-of-concept investigation that was performed in 50 patients and  demonstrated 98% accuracy in differentiating between ischaemic and haemorrhagic stroke, explains the broker.

The investigation also correctly identified the relevant brain quadrant in 78% of cases.

This report was published on November 7, 2022.

Target price is $2.10 Current Price is $1.89 Difference: $0.21
If EMV meets the Bell Potter target it will return approximately 11% (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 2.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 90.00.

Forecast for FY24:

Bell Potter forecasts a full year FY24 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 20.54.

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

GMA    GENWORTH MORTGAGE INSURANCE AUSTRALIA LIMITED

Banks – Overnight Price: $2.79

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

Following a strong 3Q, according to Goldman Sachs, Genworth Mortgage Insurance Australia has guided for its FY22 net earned premium (NEP) to reach the top-end of its guidance range of $375m-435m.

The guidance is better than the analyst had expected, and the target rises to $3.53 from $3.49. Higher dividends are also assumed. Buy.

Higher unemployment rates and lower house prices could lead to a higher-than-expected frequency and severity of claims, cautions Goldman Sachs.

This report was published on November 2, 2022.

Target price is $3.53 Current Price is $2.79 Difference: $0.74
If GMA meets the Goldman Sachs target it will return approximately 27% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 41.00 cents and EPS of 35.00 cents.
At the last closing share price the estimated dividend yield is 14.70%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.97.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 32.00 cents and EPS of 47.00 cents.
At the last closing share price the estimated dividend yield is 11.47%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.94.

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

GMG    GOODMAN GROUP

Infra & Property Developers – Overnight Price: $17.88

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

Goldman Sachs remains positive about the outlook for Goodman Group post the 1Q23 trading update.

The quarter reflected an ongoing occupancy rate of 99% and work in progress increased to $13.8bn representing an annualised rate of $7bn.

Management reconfirmed EPS guidance of 90c per share or 11% growth on FY22, which the broker views as achievable and possibly conservative.

The Buy rating and $25.40 target remain unchanged.

This report was published on November 3, 2022.

Target price is $25.40 Current Price is $17.88 Difference: $7.52
If GMG meets the Goldman Sachs target it will return approximately 42% (excluding dividends, fees and charges).
Current consensus price target is $21.84, suggesting upside of 22.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 EPS of 95.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.82.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 93.2, implying annual growth of -49.1%.
Current consensus DPS estimate is 30.2, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 19.2.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 EPS of 104.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.19.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 100.1, implying annual growth of 7.4%.
Current consensus DPS estimate is 31.1, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 17.9.

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

IMD    IMDEX LIMITED

Mining Sector Contracting – Overnight Price: $2.36

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

Bell Potter transfers coverage of Imdex and retains a Buy rating on the stock.

The analyst forecasts 6.3% compound revenue growth over the next three years from ongoing growth in software subscriptions and sensor unit rental.

A positive medium term outlook for the mining and commodities sector as well as ongoing R&D should support Imdex's leadership in the mining technology sector, suggests the broker.

A Buy rating is unchanged and the target is lowered slightly to $2.80 from $3.00.

This report was published on November 4, 2022.

Target price is $2.80 Current Price is $2.36 Difference: $0.44
If IMD meets the Bell Potter target it will return approximately 19% (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 4.20 cents and EPS of 13.40 cents.
At the last closing share price the estimated dividend yield is 1.78%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.61.

Forecast for FY24:

Bell Potter forecasts a full year FY24 dividend of 4.80 cents and EPS of 14.30 cents.
At the last closing share price the estimated dividend yield is 2.03%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.50.

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

MAQ    MACQUARIE TELECOM GROUP LIMITED

Telecommunication – Overnight Price: $53.30

Goldman Sachs rates ((MAQ)) as Initiation of coverage with Neutral (3) –

Goldman Sachs believes Macquarie Telecom, Dicker Data and Buy-rated Data#3 are strategically positioned to capitalise on long-term structural tailwinds for IT spending in A&NZ.

All three have seasoned management teams, strong competitive positions and a long track record of execution, according to the analysts. Growing revenue streams from software spending and managed IT services are also noted.

The broker initiates coverage on Macquarie Telecom with a $64.60 target price. The company provides telecommunications and cloud services to its enterprise and government customers, leveraging its data centre infrastructure.

The analyst begins coverage with a Neutral rating on concerns consensus forecasts are too high, particularly in Telecom, as both revenue and margins are declining.

More cautious margin assumptions (compared to consensus) are also adopted for the Data Centres segment. 

This report was published on November 2, 2022.

Target price is $64.60 Current Price is $53.30 Difference: $11.3
If MAQ meets the Goldman Sachs target it will return approximately 21% (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 56.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 94.50.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 0.00 cents and EPS of 80.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 65.97.

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

MOZ    MOSAIC BRANDS LIMITED

Apparel & Footwear – Overnight Price: $0.30

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

Mosaic Brands announced a $32m fund raising through a non-renounceable pro-rata entitlement and convertible notes placement.

Wilsons considers the recent 1Q23 trading update as upbeat, with like-for-like sales up 22% on the previous period, and $29.3m in EBITDA represents 53.8% of the market cap.

The notes conversion period commenced on September 30 and matures September 30, 2024.

Wilsons adjusts EPS forecasts for the update and increased shares on issue, post the estimated conversion of notes by -25% for FY23 and -46.2% for FY24. The next trading update is scheduled for January 2023.

A Market Weight rating is retained with a target of $0.37.

This report was published on November 7, 2022.

Target price is $0.37 Current Price is $0.30 Difference: $0.07
If MOZ meets the Wilsons target it will return approximately 23% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of 1.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.75.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of 4.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.82.

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

NTO    NITRO SOFTWARE LIMITED

IT & Support – Overnight Price: $2.09

Shaw and Partners rates ((NTO)) as Downgrade to Hold from Buy (3) –

Nitro Software's management rejected the $1.80 takeover offer from Potentia, again, and Alluda with a $2 per share offer has been granted due diligence.

Shaw and Partners considers the Alluda price is "closer to fair value".

However, with the shares trading at only a -4% discount to the price target of $2.20, the rating is downgraded to Hold from Buy.

This report was published on November 4, 2022.

Target price is $2.20 Current Price is $2.09 Difference: $0.11
If NTO meets the Shaw and Partners target it will return approximately 5% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 15.56 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 13.44.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 12.27 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 17.03.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

OZL    OZ MINERALS LIMITED

Copper – Overnight Price: $26.30

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

The commodities team at Goldman Sachs lowers its 2023 copper price forecasts to US$3.78/lb from US$4/lb due to weak Chinese property and European industry demand. The long run (2026) forecast is unchanged at US$4/lb.

The broker suggests either Rio Tinto or BHP Group for investors looking for copper exposure.

The target for OZ Minerals falls to $18.70 from $18.90. A Neutral rating is maintained on near-term uncertainties (costs and delays) around the Carrapateena underground mine.

This report was published on November 7, 2022.

Target price is $18.70 Current Price is $26.30 Difference: minus $7.6 (current price is over target).
If OZL meets the Goldman Sachs target it will return approximately minus 29% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $25.88, suggesting downside of -1.6%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 19.10 cents and EPS of 45.00 cents.
At the last closing share price the estimated dividend yield is 0.73%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 58.44.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 64.1, implying annual growth of -59.8%.
Current consensus DPS estimate is 13.4, implying a prospective dividend yield of 0.5%.
Current consensus EPS estimate suggests the PER is 41.0.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 39.10 cents and EPS of 156.00 cents.
At the last closing share price the estimated dividend yield is 1.49%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.86.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 79.0, implying annual growth of 23.2%.
Current consensus DPS estimate is 14.2, implying a prospective dividend yield of 0.5%.
Current consensus EPS estimate suggests the PER is 33.3.

Market Sentiment: 0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

RDY    READYTECH HOLDINGS LIMITED

Software & Services – Overnight Price: $3.97

Goldman Sachs rates ((RDY)) as Downgrade to Neutral from Buy (3) –

Despite a conditional, non-binding private equity bid for ReadyTech at $4.50, Goldman Sachs downgrades its rating to Neutral from Buy. The broker sees better relative value across its A&NZ Technology, Media and Telecommunications (TMT) coverage.

The analyst cautions the current bid is subject to negotiation and other approvals (internal and regulatory).

Separately, Goldman Sachs adjusts FY24-26 forecasts after assuming slightly higher growth for the two segments, Education and Local Govt & Justice, offset by slightly higher cost inflation. The $4.30 target price is unchanged.

This report was published on November 7, 2022.

Target price is $4.30 Current Price is $3.97 Difference: $0.33
If RDY meets the Goldman Sachs target it will return approximately 8% (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 16.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.81.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 0.00 cents and EPS of 19.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.89.

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

RIO    RIO TINTO LIMITED

Bulks – Overnight Price: $106.42

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

The commodities team at Goldman Sachs lowers its 2023 copper price forecasts to US$3.78/lb from US$4/lb due to weak Chinese property and European industry demand. The long run (2026) forecast is unchanged at US$4/lb.

The broker suggests either Rio Tinto or BHP Group for investors looking for copper exposure.

The target for Rio Tinto falls to $112.6 from $112.9. Buy. Copper represents around 16% of Goldman Sachs' FY23 forecast earnings (EBITDA).

Copper production growth will derive from Bingham Canyon and Escondida, explains the broker, and the ramp-up of the Oyu Tolgoi underground mine in Mongolia.

This report was published on November 7, 2022.

Target price is $112.60 Current Price is $106.42 Difference: $6.18
If RIO meets the Goldman Sachs target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $104.57, suggesting downside of -1.7%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 685.03 cents and EPS of 1136.01 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 9.37.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1264.9, implying annual growth of N/A.
Current consensus DPS estimate is 677.7, implying a prospective dividend yield of 6.4%.
Current consensus EPS estimate suggests the PER is 8.4.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 599.40 cents and EPS of 913.37 cents.
At the last closing share price the estimated dividend yield is 5.63%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.65.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1038.9, implying annual growth of -17.9%.
Current consensus DPS estimate is 614.4, implying a prospective dividend yield of 5.8%.
Current consensus EPS estimate suggests the PER is 10.2.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

S32    SOUTH32 LIMITED

Mining – Overnight Price: $4.28

Goldman Sachs rates ((S32)) as Neutral (3) –

The commodities team at Goldman Sachs lowers its 2023 copper price forecasts to US$3.78/lb from US$4/lb due to weak Chinese property and European industry demand. The long run (2026) forecast is unchanged at US$4/lb.

The broker suggests either Rio Tinto or BHP Group for investors looking for copper exposure.

The target for South32 is unchanged at $3.60. Neutral. Copper represents around 10% of Goldman Sachs' FY23 forecast earnings (EBITDA), after the recent acquisition of 45% of the Sierra Gorda copper mine in Chile.

This report was published on November 7, 2022.

Target price is $3.60 Current Price is $4.28 Difference: minus $0.68 (current price is over target).
If S32 meets the Goldman Sachs target it will return approximately minus 16% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $4.76, suggesting upside of 11.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 13.99 cents and EPS of 27.97 cents.
At the last closing share price the estimated dividend yield is 3.27%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.30.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 43.2, implying annual growth of N/A.
Current consensus DPS estimate is 20.0, implying a prospective dividend yield of 4.7%.
Current consensus EPS estimate suggests the PER is 9.9.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 33.68 cents and EPS of 56.23 cents.
At the last closing share price the estimated dividend yield is 7.87%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.61.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 48.0, implying annual growth of 11.1%.
Current consensus DPS estimate is 21.0, implying a prospective dividend yield of 4.9%.
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: 0.9
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

SFR    SANDFIRE RESOURCES LIMITED

Copper – Overnight Price: $4.63

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

The commodities team at Goldman Sachs lowers its 2023 copper price forecasts to US$3.78/lb from US$4/lb due to weak Chinese property and European industry demand. The long run (2026) forecast is unchanged at US$4/lb.

The broker suggests either Rio Tinto or BHP Group for investors looking for copper exposure.

The target for Sandfire Resources rises to $3.30 from $3.20. A Sell rating is maintained on forecast of negative near-term free cash flow and earnings, as well as execution risks for the Botswana/Motheo copper mine.

This report was published on November 7, 2022.

Target price is $3.30 Current Price is $4.63 Difference: minus $1.33 (current price is over target).
If SFR meets the Goldman Sachs target it will return approximately minus 29% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $4.65, suggesting upside of 0.4%(ex-dividends)
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 9.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 51.44.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -12.9, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 7.20 cents and EPS of 39.00 cents.
At the last closing share price the estimated dividend yield is 1.56%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.87.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1.5, implying annual growth of N/A.
Current consensus DPS estimate is 2.2, implying a prospective dividend yield of 0.5%.
Current consensus EPS estimate suggests the PER is 308.7.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

SGM    SIMS LIMITED

Steel & Scrap – Overnight Price: $12.82

Jarden rates ((SGM)) as Neutral (3) –

Jarden reviews BlueScope Steel and Sims ((SGM)) post the weakness in US company steel share prices and concerns about weakening US steel prices post the Federal Reserve interest rate rise.

The broker highlights Sims has not bought back shares since September 27 and is currently 93% through the $150m buyback.

With the AGM on November 8, Jarden foresees a trading update from the company which could reveal a challenging operating environment with falling ferrous and non-ferrous scrap metal prices.

(This forecast has since been vindicated).

A Neutral rating and $13.90 target are retained with Jarden's 1H23 earnings around -25% below consensus.

This report was published on November 4, 2022.

Target price is $13.90 Current Price is $12.82 Difference: $1.08
If SGM meets the Jarden target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $12.67, suggesting downside of -1.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 31.80 cents and EPS of 106.10 cents.
At the last closing share price the estimated dividend yield is 2.48%.
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 73.2, implying annual growth of -75.8%.
Current consensus DPS estimate is 32.3, implying a prospective dividend yield of 2.5%.
Current consensus EPS estimate suggests the PER is 17.5.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 38.20 cents and EPS of 127.20 cents.
At the last closing share price the estimated dividend yield is 2.98%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.08.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 86.4, implying annual growth of 18.0%.
Current consensus DPS estimate is 38.1, implying a prospective dividend yield of 3.0%.
Current consensus EPS estimate suggests the PER is 14.8.

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

SND    SAUNDERS INTERNATIONAL LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $1.14

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

Following what Shaw and Partners described as a strong September quarter from Saunders International, the company provided initial guidance for FY23. Saunders International targets revenue between $190-220m with an earnings margin of 6.5-7.5%. 

Shaw and Partners has updated forecasts to reflect company guidance. The broker finds the outlook for core sectors buoyant and believes the company is well placed to continue to win contracts and improve returns on invested capital. 

The Buy rating is retained and the target price increases to $1.50 from $1.40.

This report was published on November 8, 2022.

Target price is $1.50 Current Price is $1.14 Difference: $0.36
If SND meets the Shaw and Partners target it will return approximately 32% (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 3.80 cents and EPS of 9.40 cents.
At the last closing share price the estimated dividend yield is 3.33%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.13.

Forecast for FY24:

Shaw and Partners forecasts a full year FY24 dividend of 4.30 cents and EPS of 10.80 cents.
At the last closing share price the estimated dividend yield is 3.77%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.56.

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

WOW    WOOLWORTHS GROUP LIMITED

Food, Beverages & Tobacco – Overnight Price: $33.78

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

Woolworths Group's 1Q sales were largely in line with expectations, with misses for both Australian Foods and New Zealand Foods and beats for BigW and Australian Business-to-Business (B2B).

Management is cautiously optimistic on the outlook for Australian Foods.

The broker lowers its FY23-25 profit estimates largely due to a lower sales outlook for NZ Food and around -2-3% softer sales for Australian Food.

The target falls to $41.70 from $42.70. Buy.

This report was published on November 7, 2022.

Target price is $41.70 Current Price is $33.78 Difference: $7.92
If WOW meets the Goldman Sachs target it will return approximately 23% (excluding dividends, fees and charges).
Current consensus price target is $33.59, suggesting downside of -0.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 102.00 cents and EPS of 135.00 cents.
At the last closing share price the estimated dividend yield is 3.02%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.02.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 133.9, implying annual growth of 5.7%.
Current consensus DPS estimate is 96.4, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 25.2.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 113.00 cents and EPS of 150.00 cents.
At the last closing share price the estimated dividend yield is 3.35%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.52.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 143.6, implying annual growth of 7.2%.
Current consensus DPS estimate is 106.3, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 23.5.

Market Sentiment: -0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

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

Jarden considers the 1Q23 trading update from Woolworths Group as below expectations as Australian Food sales declined -0.5% over the previous period, as well as weak guidance for the NZ business.

Not withstanding the announcement, Jarden highlights the upbeat conference call as management pointed to improving trends in October including better service levels and cost-out programs.

On balance, food sales are expected to reach 3.5% growth over FY23 and Big W's robust performance offsets NZ.

Jarden reaffirms an Overweight rating and the target is lowered to $35.50 from $39.00.

This report was published on November 4, 2022.

Target price is $35.50 Current Price is $33.78 Difference: $1.72
If WOW meets the Jarden target it will return approximately 5% (excluding dividends, fees and charges).
Current consensus price target is $33.59, suggesting downside of -0.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 108.00 cents and EPS of 138.90 cents.
At the last closing share price the estimated dividend yield is 3.20%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.32.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 133.9, implying annual growth of 5.7%.
Current consensus DPS estimate is 96.4, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 25.2.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 113.00 cents and EPS of 145.20 cents.
At the last closing share price the estimated dividend yield is 3.35%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.26.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 143.6, implying annual growth of 7.2%.
Current consensus DPS estimate is 106.3, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 23.5.

Market Sentiment: -0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

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