Australian Broker Call *Extra* Edition – Dec 13, 2022

This story features AUSTRALIAN VINTAGE LIMITED, and other companies. For more info SHARE ANALYSIS: AVG

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)

AVG   BPT   CAR   CU6   CXO   EGL   HT1   MTS   OCL   PLS   PME   PMV   SEK   STX  

AVG    AUSTRALIAN VINTAGE LIMITED

Food, Beverages & Tobacco – Overnight Price: $0.61

Moelis rates ((AVG)) as Buy (1) –

Australian Vintage has announced the sale and leaseback of its Coldridge and Grande Junction vineyards to Warakirri Asset Management for $62.5m. Producing 23,000 tonnes of grapes, the vineyards accounted for 23% of Australian Vintage's processed grapes in FY22. 

The company retains a ten-year lease and offtake agreement, but with sale proceeds being used to pay down debt and invest in brands Moelis considers the move a positive for balance sheet strength during a challenging time given market oversupply.

The Buy rating is retained and the target price increases to $0.87 from $0.81.

This report was published on December 7, 2022.

Target price is $0.87 Current Price is $0.61 Difference: $0.26
If AVG meets the Moelis target it will return approximately 43% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 2.80 cents and EPS of 3.90 cents.
At the last closing share price the estimated dividend yield is 4.59%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.64.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 3.30 cents and EPS of 6.70 cents.
At the last closing share price the estimated dividend yield is 5.41%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.10.

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

BPT    BEACH ENERGY LIMITED

Crude Oil – Overnight Price: $1.62

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

Mining services contractor Clough has entered voluntary administration and Jarden says this increases the risk attached to the delivery of Waitsia Stage 2 for Beach Energy.

Jarden says Beach Energy was aware of the problem and had contingency plans, but the broker expects the transition could result in higher project costs or delays, and increases its capital expenditure forecasts by $100m to $900m.

But the resulting 4cps reduction in valuation is more than offset by the a 9cps increase in Jarden's forecasts value for the Perth Basin prospects.

Rating is downgraded to Overweight from Buy. Target price rises to $1.95 from $1.90.

This report was published on December 7, 2022.

Target price is $1.95 Current Price is $1.62 Difference: $0.33
If BPT meets the Jarden target it will return approximately 20% (excluding dividends, fees and charges).
Current consensus price target is $1.95, 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 2.00 cents and EPS of 21.60 cents.
At the last closing share price the estimated dividend yield is 1.23%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 23.8, implying annual growth of 8.3%.
Current consensus DPS estimate is 2.3, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 6.8.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 7.00 cents and EPS of 31.80 cents.
At the last closing share price the estimated dividend yield is 4.32%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.09.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 28.1, implying annual growth of 18.1%.
Current consensus DPS estimate is 2.7, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 5.8.

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

CAR    CARSALES.COM LIMITED

Automobiles & Components – Overnight Price: $21.60

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

Despite a strong AGM update by Carsales and improving new vehicle supply, Goldman Sachs points out display and lead volumes are being impacted. This impact is being offset by strong pricing and depth uptake, explains the broker.

Management believes it can continue to build dealer coverage (and hence long-term earnings, notes the analyst), while delivering mid-high single digit price-rises and ongoing margin expansion. 

The company expects to maintain its 80% dividend payout ratio.

The broker's earnings forecasts are largely unchanged though the target rises to $22.20 from $21.00 on a higher multiple due to the strong AGM update. Neutral retained.

This report was published on December 6, 2022.

Target price is $22.20 Current Price is $21.60 Difference: $0.6
If CAR meets the Goldman Sachs target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $23.83, suggesting upside of 10.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 56.00 cents and EPS of 79.80 cents.
At the last closing share price the estimated dividend yield is 2.59%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.07.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 76.4, implying annual growth of 34.2%.
Current consensus DPS estimate is 56.7, implying a prospective dividend yield of 2.6%.
Current consensus EPS estimate suggests the PER is 28.2.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 70.00 cents and EPS of 86.60 cents.
At the last closing share price the estimated dividend yield is 3.24%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.94.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 86.2, implying annual growth of 12.8%.
Current consensus DPS estimate is 66.2, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 25.0.

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

CU6    CLARITY PHARMACEUTICALS LIMITED

Medical Equipment & Devices – Overnight Price: $0.96

Wilsons rates ((CU6)) as Overweight (1) –

Wilson's upgrades Clarity Pharmaceuticals' target price heading into the publication of the company's Phase I/II PROPELLER trial results for diagnosing prostate cancer.

The broker observes the company is tracking about three years ahead of previous estimates on its SAR-Bombestin PSMA-negative prostate cancer trials.

Overweight rating retained. Target price rises to $1.22, which compares with the last entry in the FNArena database in September of 82c.

This report was published on December 7, 2022.

Target price is $1.22 Current Price is $0.96 Difference: $0.26
If CU6 meets the Wilsons target it will return approximately 27% (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 minus 9.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 9.70.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 11.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 8.73.

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

CXO    CORE LITHIUM LIMITED

New Battery Elements – Overnight Price: $1.16

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

Goldman Sachs initiates coverage on Core Lithium, anticipating the company's Finniss project will be Australia's next lithium producer. The project is scheduled for spodumene production from the first half of 2023, and Goldman Sachs anticipates average production of 175,000 tonnes per annum over a twelve year resource life. 

While the broker considers resource upside likely, it highlights risk of lithium prices reducing before upside can be derived. Further, the stock trades on a multiple well above peers.

The broker initiates with a Sell rating and a target price of $1.00.

This report was published on December 8, 2022.

Target price is $1.00 Current Price is $1.16 Difference: minus $0.16 (current price is over target).
If CXO meets the Goldman Sachs target it will return approximately minus 14% (excluding dividends, fees and charges – negative figures indicate an expected loss).
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 7.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.57.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 0.00 cents and EPS of 20.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.80.

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

EGL    ENVIRONMENTAL GROUP LIMITED

Overnight Price: $0.18

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

Bell Potter initiates coverage on emerging environmental engineering company, Environmental Group. Working in the resources and waste sectors, the broker finds all five core segments exposed to favourable growth trends, and growing at more than 15% per annum.

Alongside a contract book covering 50% of FY23-24 sales, leverage to the recycling infrastructure investment cycle, and a more than $100m opportunity in battery minerals emissions control, Environmental Group is commercialising a potentially "transformative" solution for the treatment of polyfluoroalkyl substances (PFAS). 

The presence of PFAS have reached potentially carconogenic levels in around 60% of drinking water in the US. Bell Potter expects Environmental Group's treatment could  offer a best in class solution in terms of efficiency and running cost. 

The broker initiates with a Buy rating and a target price of $0.26.

This report was published on December 7, 2022.

Target price is $0.26 Current Price is $0.18 Difference: $0.075
If EGL meets the Bell Potter target it will return approximately 41% (excluding dividends, fees and charges).

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of 0.83 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.29.

Forecast for FY24:

Bell Potter forecasts a full year FY24 dividend of 0.00 cents and EPS of 0.96 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.27.

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

HT1    HT&E LIMITED

Out of Home Advertising – Overnight Price: $0.97

Wilsons rates ((HT1)) as Overweight (1) –

HT&E's trading update reveals a softening in December-quarter trading, as the metro market weakened and competition kicked in, particularly from Nine Entertainment ((NEC)).

The broker rebases its FY22 forecasts -6% to -8% and downgrades FY23 forecasts.

Overweight rating retained on valuation grounds, and the broker spies opportunities for asset sales and M&A.

Target price eases to $1.70 compared with the last entry in the FNArena database in August of $1.85.

This report was published on December 7, 2022.

Target price is $1.70 Current Price is $0.97 Difference: $0.725
If HT1 meets the Wilsons target it will return approximately 74% (excluding dividends, fees and charges).
Current consensus price target is $1.53, suggesting upside of 54.0%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 8.80 cents and EPS of 14.00 cents.
At the last closing share price the estimated dividend yield is 9.03%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.96.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 13.6, implying annual growth of 153.7%.
Current consensus DPS estimate is 9.2, implying a prospective dividend yield of 9.3%.
Current consensus EPS estimate suggests the PER is 7.3.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 8.30 cents and EPS of 12.50 cents.
At the last closing share price the estimated dividend yield is 8.51%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.80.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 12.0, implying annual growth of -11.8%.
Current consensus DPS estimate is 7.1, implying a prospective dividend yield of 7.2%.
Current consensus EPS estimate suggests the PER is 8.3.

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

MTS    METCASH LIMITED

Food, Beverages & Tobacco – Overnight Price: $4.31

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

Metcash reported largely in-line first half results, according to Goldman Sachs. The first four weeks of 2H trading pointed to a mixed outlook, with Hardware sales showing first signs of deceleration due to weather impacts.

The analyst highlights a cashflow conversion ratio of 36.5% for the 1H compared to a longer-term target of around 90%. Management attributed the decrease to inventory inflation, supply chain pressures and the increasing importance of Hardware to overall revenue.

The broker sees higher operational risk regarding operating and free cash flow generation, and stays with its Neutral rating. The target rises to $4.20 from $4.10.

This report was published on December 6, 2022.

Target price is $4.20 Current Price is $4.31 Difference: minus $0.11 (current price is over target).
If MTS meets the Goldman Sachs target it will return approximately minus 3% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $4.61, suggesting upside of 7.0%(ex-dividends)
The company's fiscal year ends in April.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 22.00 cents and EPS of 29.00 cents.
At the last closing share price the estimated dividend yield is 5.10%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.86.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 31.2, implying annual growth of 24.9%.
Current consensus DPS estimate is 22.1, implying a prospective dividend yield of 5.1%.
Current consensus EPS estimate suggests the PER is 13.8.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 23.00 cents and EPS of 29.00 cents.
At the last closing share price the estimated dividend yield is 5.34%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.86.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 30.3, implying annual growth of -2.9%.
Current consensus DPS estimate is 21.0, implying a prospective dividend yield of 4.9%.
Current consensus EPS estimate suggests the PER is 14.2.

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

OCL    OBJECTIVE CORPORATION LIMITED

IT & Support – Overnight Price: $13.79

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

Objective Corp's FY23 trading update suggests robust government demand was offset by short-term revenue and margin headwinds, says Goldman Sachs.

The broker sheets the back to the reduction of services-intensity implementation; the phasing out of perpetual right-to-use revenue as the company migrates customers to a subscription platform; the resumption of travel and events; and tech wage inflation.

Overall, the broker views this as a positive, expecting the shift to subscriptions should improve the long-term prospectivity.

FY23-25 earnings (EBITDA) forecasts are downgraded -11% to -13%.

Target price is $16. This compares with $18.40 in the FNArena database as at September. Buy rating retained.

This report was published on December 7, 2022.

Target price is $16.00 Current Price is $13.79 Difference: $2.21
If OCL meets the Goldman Sachs target it will return approximately 16% (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 15.30 cents and EPS of 27.80 cents.
At the last closing share price the estimated dividend yield is 1.11%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 49.60.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 20.20 cents and EPS of 36.70 cents.
At the last closing share price the estimated dividend yield is 1.46%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 37.57.

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

PLS    PILBARA MINERALS LIMITED

New Battery Elements – Overnight Price: $4.53

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

Goldman Sachs initiates coverage on Pilbara Minerals, noting the company's ongoing execution of a growth pipeline and technical improvement is expected to grow production to 680,000 tonnes per annum by December 2023, and 1m tonnes per annum longer-term. 

The broker finds near-term pricing accounted for in valuations, hence the rating. The company has recently announced capital management through payouts of 20-30% of free cash flow, and the broker expects excess cash even at the top end.

The broker initiates with a Neutral rating and a target price of $4.50.

This report was published on December 8, 2022.

Target price is $4.50 Current Price is $4.53 Difference: minus $0.03 (current price is over target).
If PLS meets the Goldman Sachs target it will return approximately minus 1% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $4.61, suggesting upside of 0.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 17.00 cents and EPS of 75.00 cents.
At the last closing share price the estimated dividend yield is 3.75%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.04.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 70.1, implying annual growth of 269.3%.
Current consensus DPS estimate is 23.2, implying a prospective dividend yield of 5.0%.
Current consensus EPS estimate suggests the PER is 6.6.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 18.00 cents and EPS of 63.00 cents.
At the last closing share price the estimated dividend yield is 3.97%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.19.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 65.8, implying annual growth of -6.1%.
Current consensus DPS estimate is 27.4, implying a prospective dividend yield of 6.0%.
Current consensus EPS estimate suggests the PER is 7.0.

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

PME    PRO MEDICUS LIMITED

Medical Equipment & Devices – Overnight Price: $58.04

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

Wilsons believes US tailwinds are about to convert to gale-force gusts after Pro Medicus' AGM update revealed the company was tracking ahead of its forecasts and management was expecting a strong June half.

The broker observes US hospital deals are running at 2x historical norms as consolidation continues and cloud adoption in healthcare is being implemented on a huge scale as the major EHR provides become cloud exclusive as of 2023 and as the pressure to remove mounting pandemic backlogs rises.

Overweight rating retained. Target price rises to $71. This compares with the last entry in the FNArena database in September of $62. 

This report was published on December 7, 2022.

Target price is $71.00 Current Price is $58.04 Difference: $12.96
If PME meets the Wilsons target it will return approximately 22% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 26.90 cents and EPS of 53.80 cents.
At the last closing share price the estimated dividend yield is 0.46%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 107.88.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 32.50 cents and EPS of 65.10 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 89.16.

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

PMV    PREMIER INVESTMENTS LIMITED

Apparel & Footwear – Overnight Price: $24.88

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

Goldman Sachs assesses a strong (December 2) trading update by Premier Investments, and channel checks by the broker suggest robust spending will continue into Christmas.

Sales for the first 17 weeks of FY23 rose by 23.6%.

As sales momentum is now higher than previously expected, the broker raises its FY23-25 sales and profit forecasts by 3-4% and 8-10%, respectively, which also incorporates lower rental expenses than anticipated. The target price rises to $23.20 from $21.40.

Bearing in mind 30% of sales derive from the Peter Alexander brand, the analyst remains Neutral-rated on the company, given a cautious outlook for Australian consumer spending on mid-market apparel.

This report was published on December 6, 2022.

Target price is $23.20 Current Price is $24.88 Difference: minus $1.68 (current price is over target).
If PMV meets the Goldman Sachs target it will return approximately minus 7% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $25.89, suggesting upside of 3.9%(ex-dividends)
The company's fiscal year ends in July.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 100.00 cents and EPS of 146.00 cents.
At the last closing share price the estimated dividend yield is 4.02%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.04.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 144.6, implying annual growth of -19.4%.
Current consensus DPS estimate is 100.9, implying a prospective dividend yield of 4.1%.
Current consensus EPS estimate suggests the PER is 17.2.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 102.00 cents and EPS of 129.00 cents.
At the last closing share price the estimated dividend yield is 4.10%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.29.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 143.8, implying annual growth of -0.6%.
Current consensus DPS estimate is 106.4, implying a prospective dividend yield of 4.3%.
Current consensus EPS estimate suggests the PER is 17.3.

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

SEK    SEEK LIMITED

Jobs & Skilled Labour Services – Overnight Price: $21.85

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

Goldman Sachs likes the recent strong AGM trading update by Seek and notes Asia is trending strongly for the company, benefiting from stronger yields. The target price rises to $22.30 from $20.70. But that's still a Sell.

Management expects volumes to normalise over the next few years, broadly in line with consensus unemployment forecasts. However, the analyst expects a quicker recovery via growth in workforce and increased penetration of the 40% of placements not done digitally.

Seek is a less cyclical than history suggests, according to the broker, given a willingness by management to control costs and pull a greater range of yield levers.

This report was published on December 12, 2022.

Target price is $22.30 Current Price is $21.85 Difference: $0.45
If SEK meets the Goldman Sachs target it will return approximately 2% (excluding dividends, fees and charges).
Current consensus price target is $29.88, suggesting upside of 36.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 44.00 cents and EPS of 72.00 cents.
At the last closing share price the estimated dividend yield is 2.01%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.35.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 70.1, implying annual growth of 47.0%.
Current consensus DPS estimate is 38.6, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 31.3.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 47.00 cents and EPS of 74.00 cents.
At the last closing share price the estimated dividend yield is 2.15%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.53.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 78.0, implying annual growth of 11.3%.
Current consensus DPS estimate is 46.0, implying a prospective dividend yield of 2.1%.
Current consensus EPS estimate suggests the PER is 28.1.

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

STX    STRIKE ENERGY LIMITED

NatGas – Overnight Price: $0.34

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

Strike Energy has entered into a one-for-one share swap agreement (on December 7) with Warrego Energy ((WGO)) shareholders to increase its stake in the company to 19.9% from 7.6%. 

Bell Potter highlights settlement will make Strike Energy the largest shareholder in Warrego Energy, and lift its West Erregulla interest to 60%. Strike Energy will issue 150 new shares to complete the agreement.

The Buy rating is retained and the target price increases to $0.45 from $0.42.

[The bid has more recently been gazumped by Hancock Energy.]

This report was published on December 8, 2022.

Target price is $0.45 Current Price is $0.34 Difference: $0.11
If STX meets the Bell Potter target it will return approximately 32% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 0.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 85.00.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of 0.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 170.00.

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

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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.

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