Australian Broker Call *Extra* Edition – Nov 22, 2022

This story features ABACUS PROPERTY GROUP, and other companies. For more info SHARE ANALYSIS: ABP

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)

ABP   ALQ   AX1   BRG   CCX   ELD   EVN   FLT (2)   IDT   LIC   LOV   MGH   NST   UMG   UNI   WSP  

ABP    ABACUS PROPERTY GROUP

REITs – Overnight Price: $2.73

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

A new analyst from Shaw and Partners re-visits coverage of Abacus Property Group after a hiatius and sets a $3.17 target, down from $3.70.

The target falls after a general de-rating of peer multiples since last coverage and after applying higher discount rates to the REIT's cash flows.

The broker's investment thesis is unchanged: the stock offers investors exposure to a high-quality office portfolio, as well as the (still) fast-growing self storage market. Buy.

This report was published on November 16, 2022.

Target price is $3.17 Current Price is $2.73 Difference: $0.44
If ABP meets the Shaw and Partners target it will return approximately 16% (excluding dividends, fees and charges).
Current consensus price target is $2.97, suggesting upside of 8.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 18.70 cents and EPS of 19.70 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 13.86.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.5, implying annual growth of -69.7%.
Current consensus DPS estimate is 18.3, implying a prospective dividend yield of 6.7%.
Current consensus EPS estimate suggests the PER is 14.8.

Forecast for FY24:

Shaw and Partners forecasts a full year FY24 dividend of 17.80 cents and EPS of 19.80 cents.
At the last closing share price the estimated dividend yield is 6.52%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.79.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.8, implying annual growth of -3.8%.
Current consensus DPS estimate is 17.8, implying a prospective dividend yield of 6.5%.
Current consensus EPS estimate suggests the PER is 15.3.

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

ALQ    ALS LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $12.15

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

Jarden feels the outlook for ALS Ltd isn't as negative as the share price may imply, with improving commodities pricing dynamics and recontracting initiatives positives. 

Less positively, the company warned flows look to be flat over the second half after increasing 17% in the first half.

Growth saw ALS Ltd deliver first half net profit ahead of its guidance range at $164.3m. Jarden forecasts net profits slightly ahead of the company's guidance midpoint. 

The Overweight rating is retained and the target price decreases to $12.65 from $13.00.

This report was published on November 15, 2022.

Target price is $12.65 Current Price is $12.15 Difference: $0.5
If ALQ meets the Jarden target it will return approximately 4% (excluding dividends, fees and charges).
Current consensus price target is $13.33, suggesting upside of 9.7%(ex-dividends)
The company's fiscal year ends in March.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 38.40 cents and EPS of 65.10 cents.
At the last closing share price the estimated dividend yield is 3.16%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.66.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 63.4, implying annual growth of 60.5%.
Current consensus DPS estimate is 37.2, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 19.2.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 41.40 cents and EPS of 69.00 cents.
At the last closing share price the estimated dividend yield is 3.41%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.61.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 67.0, implying annual growth of 5.7%.
Current consensus DPS estimate is 39.5, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 18.1.

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

AX1    ACCENT GROUP LIMITED

Apparel & Footwear – Overnight Price: $1.64

Goldman Sachs rates ((AX1)) as Initiation of coverage with Buy (1) –

Goldman Sachs predicts the Australian consumer in the age range 15-24 years will be a key beneficiary of the 5.2% minimum wage rise from July 1 this year. These consumers are 64% employed and allocate around 65% of their money to discretionary spending.

One of the broker's top retail picks to benefit from this increased spending is Accent Group, with around 80-85% of its customers in this age group bracket.

The company operates predominately in the footwear space with a growing apparel business. The combination of a distribution business, vertically owned brands, and a store network will likely increase gross margin through vertical integration, according to the broker.

The analyst also sees strong store roll-out potential over the next three years and forecasts a 35% EPS compound annual growth rate (CAGR) over this period.

A $2.20 target price is set. Buy.

This report was published on November 14, 2022.

Target price is $2.20 Current Price is $1.64 Difference: $0.565
If AX1 meets the Goldman Sachs target it will return approximately 35% (excluding dividends, fees and charges).
Current consensus price target is $1.86, suggesting upside of 13.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 10.20 cents and EPS of 12.30 cents.
At the last closing share price the estimated dividend yield is 6.24%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.29.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 12.2, implying annual growth of 110.0%.
Current consensus DPS estimate is 10.5, implying a prospective dividend yield of 6.4%.
Current consensus EPS estimate suggests the PER is 13.4.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 11.40 cents and EPS of 13.70 cents.
At the last closing share price the estimated dividend yield is 6.97%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.93.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 13.3, implying annual growth of 9.0%.
Current consensus DPS estimate is 12.0, implying a prospective dividend yield of 7.3%.
Current consensus EPS estimate suggests the PER is 12.3.

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

BRG    BREVILLE GROUP LIMITED

Household & Personal Products – Overnight Price: $20.10

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

Following a 1H update by Breville Group and a review of peer De Longhi's 3Q results, Goldman Sachs incorporates into its forecasts a weaker organic sales outlook (constant currency) in Europe. Sales in the US and the APAC region are considered resilient.

Sufficient flex in the cost base should enable margins to remain intact, according to the analyst.

The Buy rating is maintained, with strong secular coffee premiumisation growth delivering 12% earnings and profit growth in FY23, on the broker's projections.

The target falls to $23.40 from $24.70.

This report was published on November 14, 2022.

Target price is $23.40 Current Price is $20.10 Difference: $3.3
If BRG meets the Goldman Sachs target it will return approximately 16% (excluding dividends, fees and charges).
Current consensus price target is $24.33, suggesting upside of 21.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 33.00 cents and EPS of 83.70 cents.
At the last closing share price the estimated dividend yield is 1.64%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.01.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 79.2, implying annual growth of 4.3%.
Current consensus DPS estimate is 32.8, implying a prospective dividend yield of 1.6%.
Current consensus EPS estimate suggests the PER is 25.4.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 37.00 cents and EPS of 91.60 cents.
At the last closing share price the estimated dividend yield is 1.84%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.94.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 89.9, implying annual growth of 13.5%.
Current consensus DPS estimate is 37.0, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 22.4.

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

CCX    CITY CHIC COLLECTIVE LIMITED

Apparel & Footwear – Overnight Price: $1.28

Goldman Sachs rates ((CCX)) as Initiation of coverage with a Neutral rating (3) –

Goldman Sachs suggests the Australian consumer in the age range 15-24 years will be a key beneficiary of the 5.2% minimum wage rise from July 1 this year. These consumers are 64% employed and allocate around 65% of their money to discretionary spending.

The broker initiates coverage with a Buy rating for Universal Store and Accent Group.

The broker likes the attractive global growth opportunity for City Chic Collective in plus-sized fashion retail though begins with a Neutral rating. There's thought to be near-term uncertainty from both a higher inventory balance and macro uncertainty.

Goldman Sachs also sees execution challenges associated with the company's global expansion and has lower-growth forecasts for some overseas countries. A $4.25 target is set.

This report was published on November 14, 2022.

Target price is $4.25 Current Price is $1.28 Difference: $2.965
If CCX meets the Goldman Sachs target it will return approximately 231% (excluding dividends, fees and charges).
Current consensus price target is $2.45, suggesting upside of 90.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 3.30 cents and EPS of 13.10 cents.
At the last closing share price the estimated dividend yield is 2.57%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.81.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 12.2, implying annual growth of 26.7%.
Current consensus DPS estimate is 2.2, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 10.5.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 7.70 cents and EPS of 15.40 cents.
At the last closing share price the estimated dividend yield is 5.99%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.34.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 14.0, implying annual growth of 14.8%.
Current consensus DPS estimate is 5.0, implying a prospective dividend yield of 3.9%.
Current consensus EPS estimate suggests the PER is 9.2.

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

ELD    ELDERS LIMITED

Agriculture – Overnight Price: $10.19

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

Given Elders delivered a result near the top end of guidance and a cautiously optimistic outlook. Goldman Sachs finds the -23% share price reaction to be unwarranted.

Management did highlight through the cycle earnings growth of 5-10% would be a challenge in the coming year, with recent rainfall currently the biggest hurdle, but Goldman Sachs finds the company well positioned to grow through the cycle. 

The Buy rating is retained and the target price decreases to $18.40 from $21.00.

This report was published on November 15, 2022.

Target price is $18.40 Current Price is $10.19 Difference: $8.21
If ELD meets the Goldman Sachs target it will return approximately 81% (excluding dividends, fees and charges).
Current consensus price target is $13.60, suggesting upside of 33.5%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 53.00 cents and EPS of 104.00 cents.
At the last closing share price the estimated dividend yield is 5.20%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.80.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 95.0, implying annual growth of -8.7%.
Current consensus DPS estimate is 49.7, implying a prospective dividend yield of 4.9%.
Current consensus EPS estimate suggests the PER is 10.7.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 57.00 cents and EPS of 113.00 cents.
At the last closing share price the estimated dividend yield is 5.59%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.02.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 88.5, implying annual growth of -6.8%.
Current consensus DPS estimate is 46.8, implying a prospective dividend yield of 4.6%.
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

EVN    EVOLUTION MINING LIMITED

Gold & Silver – Overnight Price: $2.52

JP Morgan rates ((EVN)) as Neutral (3) –

Gold prices and equities have rallied, partly on renewed hopes that the rate rising cycle is coming to an end according to JP Morgan. The broker notes a marked step down in market capital between gold producers, highlighting Evolution Mining has sizably decreased. 

The broker sees plenty of room for consolidation across the industry, noting a lack of participants emerging in the mid-cap space. 

The Neutral rating is retained and the target price increases to $2.30 from $2.00.

This report was published on November 15, 2022.

Target price is $2.30 Current Price is $2.52 Difference: minus $0.22 (current price is over target).
If EVN meets the JP Morgan target it will return approximately minus 9% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $2.63, suggesting upside of 4.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

JP Morgan forecasts a full year FY23 EPS of 22.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.45.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 14.2, implying annual growth of -20.0%.
Current consensus DPS estimate is 2.3, implying a prospective dividend yield of 0.9%.
Current consensus EPS estimate suggests the PER is 17.7.

Forecast for FY24:

JP Morgan forecasts a full year FY24 EPS of 32.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.88.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.0, implying annual growth of 26.8%.
Current consensus DPS estimate is 6.8, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 14.0.

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

FLT    FLIGHT CENTRE TRAVEL GROUP LIMITED

Travel, Leisure & Tourism – Overnight Price: $15.71

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

Despite Flight Centre Travel reporting strong recovery momentum across the travel industry, Goldman Sachs has raised concern around the company's ahead-of-recovery cost ramp up.

The broker does anticipate this to be a temporary set back, and assumes a return to strong profit recovery from late FY23. 

Revenue margin does remain a key concern for the broker, particularly given a longer term move towards online which offers weaker margins. 

The Neutral rating is retained and the target price decreases to $16.10 from $16.30.

This report was published on November 15, 2022.

Target price is $16.10 Current Price is $15.71 Difference: $0.39
If FLT meets the Goldman Sachs target it will return approximately 2% (excluding dividends, fees and charges).
Current consensus price target is $16.19, suggesting upside of 3.0%(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 36.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 43.64.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 32.3, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 48.6.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 17.00 cents and EPS of 87.00 cents.
At the last closing share price the estimated dividend yield is 1.08%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.06.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 89.1, implying annual growth of 175.9%.
Current consensus DPS estimate is 31.2, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 17.6.

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

---

Jarden rates ((FLT)) as Neutral (3) –

First half underlying earnings guidance of $70-90m from Flight Centre Travel is a -23% miss to consensus forecasts, but Jarden does note an improving revenue margin. 

Jarden found the update to reaffirm its positive outlook on Flight Centre Travel, noting corporate business is back at record levels and total transaction run rate is ahead of consensus.

The broker has growing confidence in the company's ability to to move towards its 2% profit before tax margin target.

The Overweight rating is retained and the target price increases to $21.20 from $21.10.

This report was published on November 15, 2022.

Target price is $21.20 Current Price is $15.71 Difference: $5.49
If FLT meets the Jarden target it will return approximately 35% (excluding dividends, fees and charges).
Current consensus price target is $16.19, suggesting upside of 3.0%(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 46.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 34.15.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 32.3, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 48.6.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 0.00 cents and EPS of 109.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.31.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 89.1, implying annual growth of 175.9%.
Current consensus DPS estimate is 31.2, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 17.6.

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

IDT    IDT AUSTRALIA LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $0.09

Taylor Collison rates ((IDT)) as No Rating (-1) –

Taylor Collison awaits the outcome of an ongoing strategic review at IDT Australia to gain a better understanding of where the company sees opportunities for revenue growth.

The broker feels the opportunity has diminished in recent months for IDT to become a significant player in mRNA drug manufacture in Australia after contract wins by CSL ((CSL)) and German biotech BioNTech in the space.

Since the start of the strategic review, the CEO David Sparling has departed and there are plans for two independent directors to leave before year end, notes the analyst.

Revenue in the 2H of FY22 was at less than half the run-rate required to breakeven, points out the broker.

Taylor Collison has no rating or target price for IDT Australia though refers to any investment in the company as speculative.

This report was published on November 7, 2022.

Current Price is $0.09. Target price not assessed.
The company's fiscal year ends in June.

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

LIC    LIFESTYLE COMMUNITIES LIMITED

Aged Care & Seniors – Overnight Price: $18.80

Canaccord Genuity rates ((LIC)) as Downgrade to Hold from Buy (3) –

Despite sales and settlements year-to-date running behind last year's results, Lifestyle Communities has reiterated its full year settlement guidance. The company anticipates a second half weighting given the timing of projects.

Canaccord Genuity highlights commentary implied no weather or labour shortage issues were impacting. The broker warns a protracted decline in the property market could prove a risk to settlements.

The rating is downgraded to Hold from Buy and the target price of $18.80 is retained.

This report was published on November 16, 2022.

Target price is $18.80 Current Price is $18.80 Difference: $0
If LIC meets the Canaccord Genuity target it will return approximately 0% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 10.50 cents and EPS of 58.70 cents.
At the last closing share price the estimated dividend yield is 0.56%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 32.03.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 11.50 cents and EPS of 61.80 cents.
At the last closing share price the estimated dividend yield is 0.61%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.42.

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

LOV    LOVISA HOLDINGS LIMITED

Retailing – Overnight Price: $24.45

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

Goldman Sachs believes the Australian consumer in the age range 15-24 years will be a key beneficiary of the 5.2% minimum wage rise from July 1 this year. These consumers are 64% employed and allocate around 65% of their money to discretionary spending.

The broker initiates coverage with a Buy rating for Universal Store and Accent Group.

The analyst begins with a Neutral for Lovisa Holdings largely because of a high current valuation. One of the only scaled global retailers focusing on fast-fashion jewellery, Goldman Sachs notes a broad range of fashion forward products at value price points.

The broker also sees execution challenges associated with the company's global expansion and has lower-growth forecasts for some overseas countries. A $29.25 target is set.

This report was published on November 14, 2022.

Target price is $29.25 Current Price is $24.45 Difference: $4.8
If LOV meets the Goldman Sachs target it will return approximately 20% (excluding dividends, fees and charges).
Current consensus price target is $26.35, suggesting upside of 7.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 70.30 cents and EPS of 67.10 cents.
At the last closing share price the estimated dividend yield is 2.88%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 36.44.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 70.8, implying annual growth of 30.3%.
Current consensus DPS estimate is 57.7, implying a prospective dividend yield of 2.4%.
Current consensus EPS estimate suggests the PER is 34.5.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 71.20 cents and EPS of 79.90 cents.
At the last closing share price the estimated dividend yield is 2.91%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.60.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 86.6, implying annual growth of 22.3%.
Current consensus DPS estimate is 67.7, implying a prospective dividend yield of 2.8%.
Current consensus EPS estimate suggests the PER is 28.2.

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

MGH    MAAS GROUP HOLDINGS LIMITED

Building Products & Services – Overnight Price: $2.42

Moelis rates ((MGH)) as Buy (1) –

Maas Group has downgraded pro forma earnings (EBITDA) guidance by -13% due to wet weather though Moelis points out the delayed work remains on hand and will contribute in subsequent periods.

The guidance downgrade also stemmed from the impact of rising interest rates on buyer condidence in the residential real estate business, explains the analyst.

The target falls to $3.92 from $5.62 after the broker lowers its FY23 earnings forecast by -15% to align with management's lower guidance and after adjusting Maas Group's multiple in line with peers.

This report was published on November 16, 2022.

Target price is $3.92 Current Price is $2.42 Difference: $1.5
If MGH meets the Moelis target it will return approximately 62% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 6.00 cents and EPS of 25.70 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 9.42.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 9.70 cents and EPS of 34.50 cents.
At the last closing share price the estimated dividend yield is 4.01%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.01.

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

NST    NORTHERN STAR RESOURCES LIMITED

Gold & Silver – Overnight Price: $10.00

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

Gold prices and equities have rallied, partly on renewed hopes that the rate rising cycle is coming to an end according to JP Morgan. Marking to market, Northern Star Resources remains the broker's sector pick. 

JP Morgan sees limited downside catalysts for Northern Star for the remainder of the calendar year. According to the broker, the company is demonstrating strong free cash yields despite heavier capital expenditure this fiscal year.

The Overweight rating is retained and the target price increases to $11.00 from $9.25.

This report was published on November 15, 2022.

Target price is $11.00 Current Price is $10.00 Difference: $1
If NST meets the JP Morgan target it will return approximately 10% (excluding dividends, fees and charges).
Current consensus price target is $10.19, suggesting upside of 1.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

JP Morgan forecasts a full year FY23 EPS of 34.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.41.

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 2.2%.
Current consensus EPS estimate suggests the PER is 39.5.

Forecast for FY24:

JP Morgan forecasts a full year FY24 EPS of 67.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.93.

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 25.5, implying a prospective dividend yield of 2.6%.
Current consensus EPS estimate suggests the PER is 26.3.

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

UMG    UNITED MALT GROUP LIMITED

Agriculture – Overnight Price: $3.15

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

FY22 earnings (EBITDA) for United Malt were in line with recent guidance though 2% above Wilsons forecast. Stronger volumes and margins in Processing were offset by a disappointing 2H in Warehouse & Distribution.

The company reaffirmed FY23 underlying earnings guidance in the range of $140-160m.

The broker has greater confidence in guidance for a significant earnings recovery over the remainder of FY23, given confirmation of less supply chain pressures and more favourable customer contract terms. The latter includes cost inflation pass-through.

As a result of these new customer contract terms, Wilsons removes the -15% discount previously applied to its valuation. While the impact of this change is partly negated by a higher forecast for net debt, the target still climbs to $3.23 from $3.01. 

The Market Weight rating is unchanged.

This report was published on November 16, 2022.

Target price is $3.23 Current Price is $3.15 Difference: $0.08
If UMG meets the Wilsons target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $3.92, suggesting upside of 24.3%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 2.50 cents and EPS of 11.80 cents.
At the last closing share price the estimated dividend yield is 0.79%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.69.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 11.5, implying annual growth of N/A.
Current consensus DPS estimate is 3.0, implying a prospective dividend yield of 1.0%.
Current consensus EPS estimate suggests the PER is 27.4.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 7.00 cents and EPS of 17.30 cents.
At the last closing share price the estimated dividend yield is 2.22%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.21.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 20.6, implying annual growth of 79.1%.
Current consensus DPS estimate is 12.6, implying a prospective dividend yield of 4.0%.
Current consensus EPS estimate suggests the PER is 15.3.

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

UNI    UNIVERSAL STORE HOLDINGS LIMITED

Apparel & Footwear – Overnight Price: $5.50

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

Goldman Sachs believes the Australian consumer in the age range 15-24 years will be a key beneficiary of the 5.2% minimum wage rise from July 1 this year. These consumers are 64% employed and allocate around 65% of their money to discretionary spending.

One of the broker's top retail picks to benefit from this increased spending is Universal Store, with its core customer a Gen-Z consumer.

The omni-channel retailer is largely focused on the youth apparel industry and has a strong track record of double digit like-for-like sales growth and successful execution of store roll out, explains Goldman Sachs.

The analyst sees strong store roll-out potential over the next three years and forecasts a 17% EPS compound annual growth rate (CAGR) over this period.

A $7.20 target price is set. Buy.

This report was published on November 14, 2022.

Target price is $7.20 Current Price is $5.50 Difference: $1.7
If UNI meets the Goldman Sachs target it will return approximately 31% (excluding dividends, fees and charges).
Current consensus price target is $5.60, suggesting upside of 1.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 26.10 cents and EPS of 37.30 cents.
At the last closing share price the estimated dividend yield is 4.75%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.75.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 37.1, implying annual growth of 22.7%.
Current consensus DPS estimate is 26.4, implying a prospective dividend yield of 4.8%.
Current consensus EPS estimate suggests the PER is 14.8.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 29.90 cents and EPS of 42.70 cents.
At the last closing share price the estimated dividend yield is 5.44%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.88.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 43.6, implying annual growth of 17.5%.
Current consensus DPS estimate is 29.8, implying a prospective dividend yield of 5.4%.
Current consensus EPS estimate suggests the PER is 12.6.

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

WSP    WHISPIR LIMITED

Cloud services – Overnight Price: $0.59

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

Whispir has announced a restructure of its cost base, planning to reduce its research and development team by -40% following a reduction in headcount that has driven $14m in annualised cost savings. 

The company estimates a one-off restructuring cost of -$2m, to impact on the second quarter, and that it will be earnings positive from the third quarter. 

Canaccord Genuity awaits reacceleration of annual recurring revenue growth to take a more positive outlook on the stock.

The Hold rating is retained and the target price decreases to $1.00 from $1.70.

This report was published on November 16, 2022.

Target price is $1.00 Current Price is $0.59 Difference: $0.405
If WSP meets the Canaccord Genuity target it will return approximately 68% (excluding dividends, fees and charges).
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 10.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 5.89.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 7.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 7.83.

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

---

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

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

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

Click to view our Glossary of Financial Terms