Australian Broker Call *Extra* Edition – Feb 06, 2023

This story features ACTINOGEN MEDICAL LIMITED, and other companies. For more info SHARE ANALYSIS: ACW

An additional news report on the recommendation, valuation, forecast and opinion changes and updates 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)

ACW   ALC   ARX   BPT   BUB   BXB   CXO   DRO   DUG   EMV   FDV   HLA   IAG   IMD   JRV   LYC   MAD   MCR   NEU   NXD   NXS   PBH   PPT   RMD   SHV   SUN   TSI   UBI   WTC   ZIP  

ACW    ACTINOGEN MEDICAL LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $0.10

Bell Potter rates ((ACW)) as Speculative Buy (1) –

Bell Potter assesses the 2Q23 activity report from Actinogen Medical, which met expectations.

FDA approval for the 6-month Phase 2b trial of Xanamem was approved by the FDA in December and results are anticipated toward late 2024 or early 2025.

Cash on the balance sheet stood at $14.5m at the December year end and the analyst continues to forecast a capital raising is likely in FY24.

There is no change to forecasts.

Target remains unchanged at 15c and the Speculative Buy rating is retained.

This report was published on February 1, 2023.

Target price is $0.15 Current Price is $0.10 Difference: $0.054
If ACW meets the Bell Potter target it will return approximately 56% (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 0.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 19.20.

Forecast for FY24:

Bell Potter forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 0.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 13.71.

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

ALC    ALCIDION GROUP LIMITED

Healthcare services – Overnight Price: $0.14

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

Canaccord Genuity reports that the 2Q23 trading update from Alcidion Group met expectations.

The group continues to focus on the expansion of its UK operations via an increased presence with the existing customers as well as expanding to 60 trusts from 45 for its software offering.

Notably, the strategic focus aligns with NHS push to achieve 90% of hospitals with an electronic patient record by the end of 2023 and 100% by 2025.

There are no changes to Canaccord Genuity;s earnings forecasts and a Buy rating is retained with a 20c price target.

This report was published on January 31, 2023.

Target price is $0.20 Current Price is $0.14 Difference: $0.055
If ALC meets the Canaccord Genuity target it will return approximately 38% (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 0.00 cents.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of 0.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 36.25.

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

ARX    AROA BIOSURGERY LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $1.15

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

Aroa Biosurgery provided the 3Q23 trading update with management retaining FY23 product, revenue and gross margin guidance, notes Bell Potter.

The analyst highlighted the company achieved strong cashflow of NZ$38.3m at the end of December 2022 as well as 10% growth in the quarter over the previous period.

In addition, a further 20-30 representatives were hired with a focus on achieving better outcomes from existing accounts.

The target is raised to $1.45 from $1.40 and the Buy rating is unchanged.

This report was published on February 1, 2023.

Target price is $1.45 Current Price is $1.15 Difference: $0.3
If ARX meets the Bell Potter target it will return approximately 26% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 0.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 1150.00.

Forecast for FY24:

Bell Potter forecasts a full year FY24 dividend of 0.00 cents and EPS of 0.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 1150.00.

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: $1.49

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

According to Bell Potter, Beach Energy reported lower than expected December 2022 quarter production at 4.8MMboe versus the 5.1MMboe forecast, with a corresponding miss on prices and revenue.

The below expectations result was attributed to the outages at Otways which represents some 23% of total production.

Management did not offer any new guidance and Bell Potter is looking to the expected update from Waitsia stage 2.

The broker's forecasts are lowered by -19% for FY23 and -24% for FY24 on the delay in the Enterprise Well at Otways.

The Buy rating is retained the target raised to $2.25 from $2.00.

This report was published on February 1, 2023.

Target price is $2.25 Current Price is $1.49 Difference: $0.765
If BPT meets the Bell Potter target it will return approximately 52% (excluding dividends, fees and charges).
Current consensus price target is $1.93, suggesting upside of 25.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 2.00 cents and EPS of 19.00 cents.
At the last closing share price the estimated dividend yield is 1.35%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.82.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 20.3, implying annual growth of -7.6%.
Current consensus DPS estimate is 3.2, implying a prospective dividend yield of 2.1%.
Current consensus EPS estimate suggests the PER is 7.6.

Forecast for FY24:

Bell Potter forecasts a full year FY24 dividend of 4.00 cents and EPS of 26.00 cents.
At the last closing share price the estimated dividend yield is 2.69%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.71.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 24.4, implying annual growth of 20.2%.
Current consensus DPS estimate is 3.9, implying a prospective dividend yield of 2.5%.
Current consensus EPS estimate suggests the PER is 6.3.

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

BUB    BUBS AUSTRALIA LIMITED

Dairy – Overnight Price: $0.30

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

Bubs Australia reported weaker than forecast 2Q23 results which management attributed to the slower transition to the new China model and weaker off take in major markets.

Revenues came in down -13% on the previous year and fell -39% on the previous quarter.

The broker increases the FY23 loss and lowers FY24 EBITDA by -55%.

The Hold rating and 35c target price are retained.

This report was published on February 1, 2023.

Target price is $0.35 Current Price is $0.30 Difference: $0.05
If BUB meets the Bell Potter target it will return approximately 17% (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 0.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 42.86.

Forecast for FY24:

Bell Potter forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 0.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 100.00.

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

BXB    BRAMBLES LIMITED

Transportation & Logistics – Overnight Price: $12.26

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

In relation to Brambles, Jarden observes the decline in the US Pallets cost tracker for the six months to December 2022, and highlights the ongoing slowdown in lumber costs as well as a slowdown in transport costs as offering potential upside to the US Chep margins in the 1H23.

Lower inflation costs will be a tailwind for Brambles as well as a "rational competitive environment" for US pallet operations, infer there is scope for better-than-forecast 1H23 results, compared to consensus estimates.

The Overweight rating and target price of $12.30 are retained.

This report was published on January 30, 2023.

Target price is $12.30 Current Price is $12.26 Difference: $0.04
If BXB meets the Jarden target it will return approximately 0% (excluding dividends, fees and charges).
Current consensus price target is $13.31, suggesting upside of 8.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 EPS of 64.05 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.14.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 67.1, implying annual growth of N/A.
Current consensus DPS estimate is 32.7, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 18.3.

Forecast for FY24:

Jarden forecasts a full year FY24 EPS of 65.06 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.84.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 74.8, implying annual growth of 11.5%.
Current consensus DPS estimate is 36.7, implying a prospective dividend yield of 3.0%.
Current consensus EPS estimate suggests the PER is 16.4.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.4
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: $1.13

Jarden rates ((CXO)) as Sell (5) –

Jarden highlights that investors in the ASX lithium sector (largely retail) remain very forgiving if recent reporting by Core Lithium's peers is anything to go by. Setbacks appear to be overlooked and share prices then resume an upward trend.

Following Core Lithium's 2Q production report the broker moderates its production outlook for FY23 and FY24 in recognition of weather impacts to open pit operations, and lowers its target to 49c from 53c.

In addition, the analyst capitalises all mining and processing costs to the end of FY23.

Jarden's commentary is littered with misgivings, including the slow pace at which the company's first cargo of direct shipping ore was loaded during the quarter.

The necessity for near-term exploration success is important to justify the company's current valuation, according to the analyst. Sell.

This report was published on January 31, 2023.

Target price is $0.49 Current Price is $1.13 Difference: minus $0.64 (current price is over target).
If CXO meets the Jarden target it will return approximately minus 57% (excluding dividends, fees and charges – negative figures indicate an expected loss).
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 0.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 141.25.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 0.00 cents and EPS of 3.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 36.45.

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

DRO    DRONESHIELD LIMITED

Hardware & Equipment – Overnight Price: $0.37

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

Bell Potter considers DroneShield reported a robust 4Q22 result with revenues rising 59%, assisted by four new contracts.

Cashflow losses were reduced to -$0.3m from -$0.8m iin the previous quarter and the analyst views the company as building on its strengths with $10m in new contracts, alongside a $200m order pipeline and $19m in cash.

Revenue forecasts are lifted by 6% for FY23 and 15% for FY24 by Bell Potter.

The Buy rating is retained and the target raised to 42c from 34c.

This report was published on February 1, 2023.

Target price is $0.42 Current Price is $0.37 Difference: $0.05
If DRO meets the Bell Potter target it will return approximately 14% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 0.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 46.25.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of 0.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 370.00.

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

DUG    DUG TECHNOLOGY LIMITED

Cloud services – Overnight Price: $0.86

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

Canaccord Genuity attributes a reset cost base for DUG Technology's ongoing strong performance, which is currently well above pre-pandemic levels. The company reported 2Q revenue and earnings (EBITDA) growth of 25% and 53%, respectively, on a sequential basis.

An increased pace of Services awards suggests to the analyst further upside potential. On a 24-month view, the company is considered to be lagging current valuations of Oil & Gas services peers.

The broker points out annualised 1H revenue and earnings are now in line and 45% higher, respectively, with FY19 and FY20 averages.

The Buy rating is unchanged and the target rises to $1.22 from 97c.

This report was published on January 31, 2023.

Target price is $1.22 Current Price is $0.86 Difference: $0.36
If DUG meets the Canaccord Genuity target it will return approximately 42% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of 2.89 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.81.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of 4.33 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.87.

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: $1.65

Bell Potter rates ((EMV)) as Speculative Buy (1) –

EMvision Medical Devices reported cash inflow of $4.7m in the December 2022 quarter, generated from grants, tax incentives and cash-on-hand of $9.6m, of which some $6.3m came in the form of "non-dilutive fundings" notes Bell Potter.

The broker lifts EPS forecasts for FY23 from a loss to a 2.7c profit and raises FY24 EPS forecasts 22%.

The Speculative Buy rating is retained.

The target price lifted to $2.30 from $2.10.

This report was published on February 1, 2023.

Target price is $2.30 Current Price is $1.65 Difference: $0.655
If EMV meets the Bell Potter target it will return approximately 40% (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 2.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 60.93.

Forecast for FY24:

Bell Potter forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 7.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 22.85.

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

FDV    FRONTIER DIGITAL VENTURES LIMITED

Online media & mobile platforms – Overnight Price: $0.88

Bell Potter rates ((FDV)) as Speculative Buy (1) –

Frontier Digital Ventures' 4Q23 trading update was robust says Bell Potter, with over a threefold increase in portfolio revenue on 2021 results.

EBITDA from LATAM grew 86.6% on the previous year, Asia rose 60.2% and MENA showed an improvement.

EPS forecasts are adjusted by 0.3c for FY22 with no changes beyond that. The Speculative Buy rating and $1.23 target are maintained.

This report was published on February 1, 2023.

Target price is $1.23 Current Price is $0.88 Difference: $0.35
If FDV meets the Bell Potter target it will return approximately 40% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 4.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 22.00.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 1.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 62.86.

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

HLA    HEALTHIA LIMITED

Healthcare services – Overnight Price: $1.37

Jarden rates ((HLA)) as Buy (1) –

Jarden leaves its valuation for Healthia broadly unchanged following a solid 1H trading update.

The broker's earnings (EBITDA) estimate for FY23 remains at $40m, compared to reiterated guidance by management for greater than $40m.

Trading for January is showing positive momentum, which implies to the analyst the ongoing return to normalised trading following covid disruptions.

The Buy rating is unchanged while the target creeps up to $2.23 from $2.22.

This report was published on January 31, 2023.

Target price is $2.23 Current Price is $1.37 Difference: $0.86
If HLA meets the Jarden target it will return approximately 63% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 3.00 cents and EPS of 11.20 cents.
At the last closing share price the estimated dividend yield is 2.19%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.23.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 5.00 cents and EPS of 13.30 cents.
At the last closing share price the estimated dividend yield is 3.65%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.30.

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

IAG    INSURANCE AUSTRALIA GROUP LIMITED

Insurance – Overnight Price: $4.73

Jarden rates ((IAG)) as Buy (1) –

General insurance premium rates are accelerating across property-related classes in response to the New Zealand floods and inflation pressures are starting to ease, according to Jarden.

As a result of these circumstances, the broker sees potential for expanding insurance trading ratio (ITR) margins on larger premium pools, and remains overweight on the General Insurance sector.

Within the sector, the analysts prefer Suncorp in 2023 due to its greater New Zealand resinsurance protections compared to Insurance Australia Group. The latter has higher retentions under its new reinsurance cover effective from January 1 this year.

The Buy rating and $5.65 target for Insurance Australia Group are retained.

This report was published on January 31, 2023.

Target price is $5.65 Current Price is $4.73 Difference: $0.92
If IAG meets the Jarden target it will return approximately 19% (excluding dividends, fees and charges).
Current consensus price target is $5.19, suggesting upside of 13.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 22.00 cents and EPS of 29.30 cents.
At the last closing share price the estimated dividend yield is 4.65%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.14.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 28.9, implying annual growth of 105.1%.
Current consensus DPS estimate is 19.0, implying a prospective dividend yield of 4.1%.
Current consensus EPS estimate suggests the PER is 15.8.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 29.00 cents and EPS of 38.40 cents.
At the last closing share price the estimated dividend yield is 6.13%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.32.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 35.5, implying annual growth of 22.8%.
Current consensus DPS estimate is 28.1, implying a prospective dividend yield of 6.1%.
Current consensus EPS estimate suggests the PER is 12.9.

Market Sentiment: 0.3
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: $2.56

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

While Canaccord Genuity is not overly positive on the -$324m acquisition of Norwegian rival Devico and associated $224m capital raise, the broker likes recent performance (partial release of 1H results) and the outlook, given recent gold and copper price increases.

The 1H was a 10% beat versus the analyst's forecasts, while the acquisition will have no impact on the broker's FY24 estimate. It's felt management could have raised around -$75m less equity, which would have resulted in 8% accretion to the broker's EPS forecasts. 

The target rises to $2.93 from $2.53. Canaccord notes an easing in labour tightness and believes cost increases are being largely passed on to customers. Buy.

This report was published on January 31, 2023.

Target price is $2.93 Current Price is $2.56 Difference: $0.37
If IMD meets the Canaccord Genuity target it will return approximately 14% (excluding dividends, fees and charges).
Current consensus price target is $2.71, suggesting upside of 8.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 4.10 cents and EPS of 14.00 cents.
At the last closing share price the estimated dividend yield is 1.60%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.29.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 14.4, implying annual growth of 29.7%.
Current consensus DPS estimate is 4.2, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 17.4.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 4.40 cents and EPS of 15.10 cents.
At the last closing share price the estimated dividend yield is 1.72%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.95.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.5, implying annual growth of 7.6%.
Current consensus DPS estimate is 4.9, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 16.1.

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

JRV    JERVOIS GLOBAL LIMITED

New Battery Elements – Overnight Price: $0.27

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

Cobalt, nickel and copper miner Jervois Global reported 4Q results showing cobalt sales from Finland in line with Canaccord Genuity's forecast and a revenue beat overall, though earnings (EBITDA) were softer than expected.

Management provided FY23 sales guidance of 5.3-5.6kt for cobalt compared to the broker's forecast for 5.58kt.

Unaudited group 2022 accounts also showed earnings of -US$5.2m, a beat versus the -US$14.4m expected by the analyst.

Canaccord Genuity expects a shift in Electric vehicle sales to new regions (that use ternary cathodes on batteries) will result in greater demand for the company's products. The Buy rating and 85c target are unchanged.

This report was published on January 31, 2023.

Target price is $0.65 Current Price is $0.27 Difference: $0.385
If JRV meets the Canaccord Genuity target it will return approximately 145% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 EPS of minus 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 26.50.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 EPS of minus 2.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 13.25.

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

LYC    LYNAS RARE EARTHS LIMITED

Rare Earth Minerals – Overnight Price: $9.40

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

Canaccord Genuity leaves its Buy rating and $11.00 target for Lynas Rare Earths unchanged following in-line 2Q production results.

The stock remains the broker's top pick in its coverage of the Electric Vehicle Materials sector.

Sales of 4.4kt total rare earth oxides (TREO)/1.5kt NdPr were also in line for the 2Q while the average selling price of $62.50/kg was a beat versus the forecasts by the analyst and consensus of $51/kg and 53/kg, respectively.

This report was published on January 31, 2023.

Target price is $11.00 Current Price is $9.40 Difference: $1.6
If LYC meets the Canaccord Genuity target it will return approximately 17% (excluding dividends, fees and charges).
Current consensus price target is $8.42, suggesting downside of -9.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of 52.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.08.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 44.6, implying annual growth of -25.6%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 20.9.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of 93.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.11.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 70.5, implying annual growth of 58.1%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 13.2.

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

MAD    MADER GROUP LIMITED

Mining Sector Contracting – Overnight Price: $4.34

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

Based on the results for the December 2022 trading update where Mader Group registered sales revenues of $580m, Bell Potter assesses that the company may beat the upgraded guidance forecasts.

The company generated growth in Australia from the infrastructure maintenance division and increased employees in North America.

The broker's EPS forecasts are raised by 2% for FY23 and 7% for FY24.

Buy rating retained. Target raised to $5.00 from $4.20.

This report was published on February 1, 2023.

Target price is $5.00 Current Price is $4.34 Difference: $0.66
If MAD meets the Bell Potter target it will return approximately 15% (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 5.60 cents and EPS of 19.40 cents.
At the last closing share price the estimated dividend yield is 1.29%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.37.

Forecast for FY24:

Bell Potter forecasts a full year FY24 dividend of 8.30 cents and EPS of 24.50 cents.
At the last closing share price the estimated dividend yield is 1.91%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.71.

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

MCR    MINCOR RESOURCES NL

Nickel – Overnight Price: $1.59

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

In the near term Bell Potter considers the 1H23 upcoming results for Mincor Resources may provide a headwind to the share price post the 2Q23 nickel production update, which missed the broker's forecasts.

Management re-confirmed the FY23 production of 6,000 – 10,000t of nickel, even though the year-to-date nickel production reached 1.741t.

The broker's earnings forecasts are adjusted for changes to the nickel hedging contract, resulting in a FY23 EPS upgrade of 101% and a -10% downgrade for FY24.

The Buy rating retained and the target raised to $1.87 from $1.85.

This report was published on February 1, 2023.

Target price is $1.87 Current Price is $1.59 Difference: $0.275
If MCR meets the Bell Potter target it will return approximately 17% (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 15.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.56.

Forecast for FY24:

Bell Potter forecasts a full year FY24 dividend of 0.00 cents and EPS of 25.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.18.

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

NEU    NEUREN PHARMACEUTICALS LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $7.71

Bell Potter rates ((NEU)) as Downgrade to Hold from Speculative Buy (3) –

Neuren Pharmaceuticals reported 4Q22 results with the company generating a cash position of $40.2m at the end of the period and $13.4 for the fourth quarter, highlights Bell Potter.

The company continues to wait for FDA to consider trofinetide and the interim patients for the Phase 2 trials of NNZ-2591 in Angelman, Phelan-McDemid and Pitt Hopkins syndrome have started.

The rating is downgraded to Hold from Speculative Buy due to the strong share price performance.

Target remains unchanged at $8.60.

This report was published on February 1, 2023.

Target price is $8.60 Current Price is $7.71 Difference: $0.89
If NEU meets the Bell Potter target it will return approximately 12% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 2.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 265.86.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of 52.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.60.

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

NXD    NEXTED GROUP LIMITED

Overnight Price: $1.31

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

Bell Potter considers the 1H23 guidance upgrade from NextEd Group's management.

Enrollment numbers for international student rose 350% in the December 2022 quarter to around 4500, with continuing growth into January, up 17% to a total of 4900.

The growth trend is expected to continue over the 2H23.

Bell Potter makes some minor revenue forecast changes and no change to EPS estimates.

The Buy rating is unchanged and the target raised to $1.50 from $1.40.

This report was published on February 1, 2023.

Target price is $1.50 Current Price is $1.31 Difference: $0.185
If NXD meets the Bell Potter target it will return approximately 14% (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 0.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 146.11.

Forecast for FY24:

Bell Potter forecasts a full year FY24 dividend of 0.00 cents and EPS of 4.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 32.07.

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

NXS    NEXT SCIENCE LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $0.62

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

A change in analyst at Canaccord Genuity results in substantial decreases in forecasts for Next Science on less optimism around Xperience. Should trials delays for this no rinse antimicrobial solution continue, balance sheet pressure is envisaged.

While there may be significant upside once Xperience data is released in about a year, the broker slashes its 12-month target to 85c form $2.01.

The 4Q activities report (released on January 30) revealed total product sales grew by 40% versus the previous corresponding period. 

Cash burn of -US2.9m was largely due to expenditure on new sales representatives which will take time to bear fruit, expects the analyst. Buy.

This report was published on January 31, 2023.

Target price is $0.85 Current Price is $0.62 Difference: $0.225
If NXS meets the Canaccord Genuity target it will return approximately 36% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 6.35 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 9.85.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of 7.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.33.

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

PBH    POINTSBET HOLDINGS LIMITED

Gaming – Overnight Price: $1.61

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

PointsBet Holdings reported 2Q23 revenue growth of 34% with a 68% increase in the US operational revenue performance. 

Bell Potter considers this to be a "solid" quarter for the company.

Management are looking to continue to rein in the cash burn to outflows of $70m against the 1H23 outflows of $123m.

Bell Potter adjusts revenue forecasts by -5% for FY23 and -10% for FY24 due to lower expectations for the cash active clients in both Australia and the US.

An equity raising of some $100m is still anticipated in FY24.

Buy rating retained the target lowered to $3.50 from $4.50 due an adjustment in the discount rate to be more conservative in the valuation assumptions.

This report was published on February 1, 2023.

Target price is $3.50 Current Price is $1.61 Difference: $1.885
If PBH meets the Bell Potter target it will return approximately 117% (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 81.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 1.99.

Forecast for FY24:

Bell Potter forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 53.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 3.05.

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

PPT    PERPETUAL LIMITED

Wealth Management & Investments – Overnight Price: $26.95

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

Bell Potter assesses the outlook for Perpetual with the inclusion of Pendal ((PDL)).

FUM increased by 4% over the 2Q23 for Perpetual and 2.4% for Pendal ((PDL)), although both fund managers reported US outflows over the period.

The broker's adjust earnings forecasts for the additional earnings of Pendal ((PDL)) for January 23, 2023, EPS estimates are lowered by -2.3% for FY23 and -9.9% for FY24.

Buy rating retained and the target lowered to $30.94 from $38.73.

This report was published on February 1, 2023.

Target price is $30.94 Current Price is $26.95 Difference: $3.99
If PPT meets the Bell Potter target it will return approximately 15% (excluding dividends, fees and charges).
Current consensus price target is $29.60, suggesting upside of 12.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 194.00 cents and EPS of 223.80 cents.
At the last closing share price the estimated dividend yield is 7.20%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.04.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 213.2, implying annual growth of 18.7%.
Current consensus DPS estimate is 184.5, implying a prospective dividend yield of 7.0%.
Current consensus EPS estimate suggests the PER is 12.4.

Forecast for FY24:

Bell Potter forecasts a full year FY24 dividend of 199.00 cents and EPS of 242.30 cents.
At the last closing share price the estimated dividend yield is 7.38%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.12.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 224.8, implying annual growth of 5.4%.
Current consensus DPS estimate is 190.7, implying a prospective dividend yield of 7.2%.
Current consensus EPS estimate suggests the PER is 11.8.

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

RMD    RESMED INC

Medical Equipment & Devices – Overnight Price: $32.31

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

The 2Q23 results from ResMed were better than consensus forecasts by 1.8% and 4.8% above Jarden's forecasts.

The analyst expects ResMed to continue to generate revenue and earnings growth with sustained margin improvement supported by improved supply chains and market share gains.

Jarden is looking to what impact the Consent Decree on Philips will have on the market share potential for ResMed for the medium to long term.

The broker's earnings forecasts are raised by 2% and 4.9% for FY23 and FY24.

An Overweight rating is retained and the target is raised to $35.90 from $34.56.

This report was published on January 27, 2023.

Target price is $35.90 Current Price is $32.31 Difference: $3.59
If RMD meets the Jarden target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $36.23, suggesting upside of 12.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 25.39 cents and EPS of 97.17 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 33.25.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 92.2, implying annual growth of N/A.
Current consensus DPS estimate is 25.4, implying a prospective dividend yield of 0.8%.
Current consensus EPS estimate suggests the PER is 34.9.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 27.70 cents and EPS of 116.85 cents.
At the last closing share price the estimated dividend yield is 0.86%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.65.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 108.6, implying annual growth of 17.8%.
Current consensus DPS estimate is 27.3, implying a prospective dividend yield of 0.8%.
Current consensus EPS estimate suggests the PER is 29.6.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

SHV    SELECT HARVESTS LIMITED

Agriculture – Overnight Price: $4.00

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

Select Harvests FY22 trading update was poor with lower market prices for almonds, quality issues for the crop and a downgrade to inventory valuations, leading to a potential goodwill impairment of $26m in the 1H23, notes Bell Potter.

Accordingly the broker downgrades EBITDA forecasts by -50% for FY23 and -27% for FY24.

Bell Potter considers the company is attractively priced, trading at a discount to the estimated NAV of $6 to $6.50 per share, with the supply side issues likely to result in improvements in almond prices.

A Buy rating is maintained with an adjusted target of $5.65 from $6.20.

This report was published on January 30, 2023.

Target price is $5.65 Current Price is $4.00 Difference: $1.65
If SHV meets the Bell Potter target it will return approximately 41% (excluding dividends, fees and charges).
The company's fiscal year ends in September.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 7.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 51.95.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 2.00 cents and EPS of 9.30 cents.
At the last closing share price the estimated dividend yield is 0.50%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 43.01.

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

SUN    SUNCORP GROUP LIMITED

Insurance – Overnight Price: $12.33

Jarden rates ((SUN)) as Buy (1) –

General insurance premium rates are accelerating across property-related classes in response to the New Zealand floods and inflation pressures are starting to ease, according to Jarden.

As a result of these circumstances, the broker sees potential for expanding insurance trading ratio (ITR) margins on larger premium pools, and remains overweight on the General Insurance sector.

Within the sector, the analysts prefer Suncorp in 2023 due to its greater New Zealand resinsurance protections compared to Insurance Australia Group. The latter has higher retentions under its new reinsurance cover effective from January 1 this year.

The Buy rating and $13.50 target for Suncorp Group are retained.

This report was published on January 31, 2023.

Target price is $13.50 Current Price is $12.33 Difference: $1.17
If SUN meets the Jarden target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $14.08, suggesting upside of 14.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 76.00 cents and EPS of 100.00 cents.
At the last closing share price the estimated dividend yield is 6.16%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 94.1, implying annual growth of 74.9%.
Current consensus DPS estimate is 69.8, implying a prospective dividend yield of 5.7%.
Current consensus EPS estimate suggests the PER is 13.1.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 80.70 cents and EPS of 94.30 cents.
At the last closing share price the estimated dividend yield is 6.55%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.08.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 100.1, implying annual growth of 6.4%.
Current consensus DPS estimate is 75.6, implying a prospective dividend yield of 6.1%.
Current consensus EPS estimate suggests the PER is 12.3.

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

TSI    TOP SHELF INTERNATIONAL HOLDINGS LIMITED

Food, Beverages & Tobacco – Overnight Price: $1.14

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

Second quarter results showed the first positive operating contribution for Top Shelf International, assisted by a doubling in Branded products revenue and a recovery in cash gross margin, explains Canaccord Genuity.

The broker expects the in-market performance of NED Whisky and Grainshaker Vodka will build over 2023 on leverage from brand investment and potential export agreements.

More negatively, the analyst has lingering concerns around capital requirements for the business though ultimately feels a $6.7m cash balance and access to $16.7m in funding will suffice.

The Speculative Buy rating and $1.92 target are retained.

This report was published on January 31, 2023.

Target price is $1.92 Current Price is $1.14 Difference: $0.78
If TSI 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 19.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 6.00.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 17.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 6.71.

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

UBI    UNIVERSAL BIOSENSORS INC

Medical Equipment & Devices – Overnight Price: $0.30

Bell Potter rates ((UBI)) as Downgrade to Hold from Buy (3) –

Bell Potter considers the 4Q22 cashflow and trading report for Universal Biosensors.

Receipts from customers slowed in the 4Q22 from the 3Q22 and net cash declined to $26.8m from $28.4m.

The broker's EBITDA forecasts are lowered -11.7% and -9.5% for FY23 and FY24, due to the lower than expected receipts from customers, as the company transitions to the new Sentia platform which remains in a test phase.

Bell Potter doesn't expect significant revenue growth until FY24.

The rating is downgraded to a Hold and target declines to $0.38 from $0.60.

This report was published on February 1, 2023.

Target price is $0.38 Current Price is $0.30 Difference: $0.075
If UBI meets the Bell Potter target it will return approximately 25% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 6.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 4.55.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 5.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 5.55.

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

WTC    WISETECH GLOBAL LIMITED

Cloud services – Overnight Price: $62.00

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

WiseTech Global announced the acquisition of Envase Technologies at a cost of -US$230m which is funded via US$69m in shares and US$161m in cash, notes Bell Potter.

The analyst has updated the earnings models with a -4% reduction in EPS for FY23 and a 1% increase for FY24. Envase is anticipated to contribute to earnings in FY24 and FY25.

A Hold rating and $60 target are retained.

This report was published on January 30, 2023.

Target price is $60.00 Current Price is $62.00 Difference: minus $2 (current price is over target).
If WTC meets the Bell Potter target it will return approximately minus 3% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $65.31, suggesting upside of 8.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 14.20 cents and EPS of 75.30 cents.
At the last closing share price the estimated dividend yield is 0.23%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 82.34.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 77.3, implying annual growth of 29.5%.
Current consensus DPS estimate is 14.7, implying a prospective dividend yield of 0.2%.
Current consensus EPS estimate suggests the PER is 77.9.

Forecast for FY24:

Bell Potter forecasts a full year FY24 dividend of 17.50 cents and EPS of 95.30 cents.
At the last closing share price the estimated dividend yield is 0.28%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 65.06.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 100.3, implying annual growth of 29.8%.
Current consensus DPS estimate is 18.9, implying a prospective dividend yield of 0.3%.
Current consensus EPS estimate suggests the PER is 60.0.

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

ZIP    ZIP CO LIMITED

Business & Consumer Credit – Overnight Price: $0.68

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

Shaw and Partners notes that for the first time in three quarters, for Zip Co's quarterly release (2Q) was broadly ahead of the broker's forecasts. It's now felt positive free cash flows may be achieved in the 2H of FY23.

The broker highlights benefits over the 2Q from cost cutting and credit control along with the acquistion of large merchants. Revenue and cash margins of $188m and 2.6% exceeded expectations for $180m and 2.4%.

While margins are trending ahead of the analyst's expectations, the Buy rating and $2.06 target are left unchanged.

This report was published on January 30, 2023.

Target price is $2.06 Current Price is $0.68 Difference: $1.385
If ZIP meets the Shaw and Partners target it will return approximately 205% (excluding dividends, fees and charges).
Current consensus price target is $0.67, suggesting upside of 0.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 14.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 4.82.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -20.6, 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:

Shaw and Partners forecasts a full year FY24 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 6.68.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -13.6, 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.

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

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