Australian Broker Call *Extra* Edition – Feb 28, 2023

This story features CODAN LIMITED, and other companies. For more info SHARE ANALYSIS: CDA

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)

CDA   EVN   EXP   GNC   HLA   IEL   IPH   LYC   NWH   PGH   PME (2)   RBL (2)   RFG   RIC   SKC   SUL   SXL   THL   TTM   TWE (2)   WES  

CDA    CODAN LIMITED

Hardware & Equipment – Overnight Price: $5.42

Canaccord Genuity rates ((CDA)) as Upgrade to Buy from Hold (1) –

Interim results for Codan were in line with guidance last month, with the Communications division now the main driver of earnings, observes Canaccord Genuity.

While lower detector sales into Africa for the half impacted sales materially when compared to the previous corresponding period, revenue in Communications rose by 16%. Margin improvement led to a 40% rise in profit for the division.

The broker feels a nadir has been reached for detector sales, and management expects double-digit revenue growth in Communications beyond FY23 (and improving margins).

No specific guidance was given.

Canaccord upgrades its rating to Buy from Hold on renewed revenue growth, margin expansion and less risk around Africa. The target rises to $6.18 from $5.64.

This report was published on February 17, 2023.

Target price is $6.18 Current Price is $5.42 Difference: $0.76
If CDA meets the Canaccord Genuity target it will return approximately 14% (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 18.00 cents and EPS of 35.00 cents.
At the last closing share price the estimated dividend yield is 3.32%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.49.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 22.00 cents and EPS of 44.00 cents.
At the last closing share price the estimated dividend yield is 4.06%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.32.

Market Sentiment: 0.0
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: $2.66

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

Higher expenses and a one-off currency adjustment caused 1H results for Evolution Mining to miss forecasts by Canaccord Genuity and consensus.

A 2cps interim dividend was declared, below the 3.6cps expected by consensus.

Guidance for FY23 gold production and all-in sustaining costs (AISC) are unchanged, as is the broker's Hold rating and $3.20 target.

This report was published on February 17, 2023.

Target price is $3.20 Current Price is $2.66 Difference: $0.54
If EVN meets the Canaccord Genuity target it will return approximately 20% (excluding dividends, fees and charges).
Current consensus price target is $2.99, suggesting upside of 12.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 3.00 cents and EPS of 16.00 cents.
At the last closing share price the estimated dividend yield is 1.13%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.63.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.3, implying annual growth of -13.8%.
Current consensus DPS estimate is 3.6, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 17.4.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 10.00 cents and EPS of 29.00 cents.
At the last closing share price the estimated dividend yield is 3.76%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.17.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 22.0, implying annual growth of 43.8%.
Current consensus DPS estimate is 8.7, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 12.1.

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

EXP    EXPERIENCE CO LIMITED

Travel, Leisure & Tourism – Overnight Price: $0.30

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

Experience Co registered materially stronger revenues in the 1H, aided by strong yield execution, and Canaccord Genuity feels a recovery "crescendo" is near.

The analyst expects yields to keep improving with an influx of higher-paying international tourists.

A key variable within the broker's forecast is the extent to which volume recovery helps offset the cost inefficiencies in the skydiving business, where operational leverage failed to impress in the 1H. 

Canaccord raises its FY23 and FY24 earnings (EBITDA) forecasts by 11% and 4%, respectively, and the target rises to 36c from 29c.

This report was published on February 17, 2023.

Target price is $0.36 Current Price is $0.30 Difference: $0.06
If EXP meets the Canaccord Genuity target it will return approximately 20% (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 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.00.

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

GNC    GRAINCORP LIMITED

Agriculture – Overnight Price: $7.79

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

GrainCorp has provided full year earnings guidance of $470-530m compared to earnings of $703m in the last fiscal year, and net profit guidance of $180-220m compared to the previous $380m.

Despite being down year-on-year, Wilsons highlights guidance still reflects a large east coast winter crop, and ongoing robust demand. 

The broker was surprised by guidance for processing earnings to increase year-on-year, and this underpins the 24% increase to the full year forecast. 

The Market Weight rating is retained and the target price increases to $7.29 from $7.24.

This report was published on February 17, 2023.

Target price is $7.29 Current Price is $7.79 Difference: minus $0.5 (current price is over target).
If GNC meets the Wilsons target it will return approximately minus 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $8.80, suggesting upside of 13.0%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 56.00 cents and EPS of 94.50 cents.
At the last closing share price the estimated dividend yield is 7.19%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.24.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 94.2, implying annual growth of -43.8%.
Current consensus DPS estimate is 43.2, implying a prospective dividend yield of 5.5%.
Current consensus EPS estimate suggests the PER is 8.3.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 28.00 cents and EPS of 42.40 cents.
At the last closing share price the estimated dividend yield is 3.59%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.37.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 53.6, implying annual growth of -43.1%.
Current consensus DPS estimate is 30.3, implying a prospective dividend yield of 3.9%.
Current consensus EPS estimate suggests the PER is 14.5.

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

HLA    HEALTHIA LIMITED

Healthcare services – Overnight Price: $1.38

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

Healthia has announced a number of clinic acquisitions, exceeding its own minium acquisition spend of $20m for the year. The most recent, which compromised the Melbourne Hand Rehab clinics, the Kosmac & Clemens Optometrists clinics, and two Vision Eye Health clinics, came at a cost of $14.0m, are expected to deliver $10.5 in annualised revenue and $2.9m in earnings. 

Shaw and Partners has updated its forecasts to reflect the acquisitions, lifting revenue 0.7%, 3.9%, and 3.9% through to FY25, and earnings 1.5%, 6.7% and 6.7% for the same years.

The Buy rating and target price of $2.78 are retained.

This report was published on February 17, 2023.

Target price is $2.78 Current Price is $1.38 Difference: $1.405
If HLA meets the Shaw and Partners target it will return approximately 102% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 4.00 cents and EPS of 10.30 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 13.35.

Forecast for FY24:

Shaw and Partners forecasts a full year FY24 dividend of 4.40 cents and EPS of 11.00 cents.
At the last closing share price the estimated dividend yield is 3.20%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.50.

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

IEL    IDP EDUCATION LIMITED

Education & Tuition – Overnight Price: $28.55

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

Reporting ahead of IDP Education's result, Goldman Sachs was anticipating 63% year-on-year earnings growth to $128m. The return of students to Australia in large numbers, as well as continued growth in the US and UK, both underpin the broker's expected strong result. 

The broker also anticipates some commentary from the company around potential China tailwinds and the potential return of students from China from mid-2023, from both the reopening of the country and a renewed immigration policy from Australia. 

The Buy rating is retained and the target price increases to $36.70 from $36.00.

This report was published on February 16, 2023.

Target price is $36.70 Current Price is $28.55 Difference: $8.15
If IEL meets the Goldman Sachs target it will return approximately 29% (excluding dividends, fees and charges).
Current consensus price target is $32.08, suggesting upside of 12.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 38.00 cents and EPS of 54.00 cents.
At the last closing share price the estimated dividend yield is 1.33%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 52.87.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 56.2, implying annual growth of 52.5%.
Current consensus DPS estimate is 40.6, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 50.8.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 54.00 cents and EPS of 77.00 cents.
At the last closing share price the estimated dividend yield is 1.89%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 37.08.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 71.5, implying annual growth of 27.2%.
Current consensus DPS estimate is 50.9, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 39.9.

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

IPH    IPH LIMITED

Legal – Overnight Price: $8.14

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

First half results for IPH pretty much aligned with prior AGM commentary, notes Canaccord Genuity. Earnings (EBITDA) were a 3% beat versus the analyst's estimate.

The analyst highlights a material beat over the broker's earnings (EBITDA) estimate for the recently-acquired, Canadian-based Smart & Biggar. The 35% earnings margin for this IP business beat the 30% forecast.

The target increases to $11.60 from $11.25. Buy.

This report was published on February 17, 2023.

Target price is $11.60 Current Price is $8.14 Difference: $3.46
If IPH meets the Canaccord Genuity target it will return approximately 43% (excluding dividends, fees and charges).
Current consensus price target is $10.42, suggesting upside of 28.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 33.00 cents and EPS of 44.40 cents.
At the last closing share price the estimated dividend yield is 4.05%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 41.8, implying annual growth of 73.5%.
Current consensus DPS estimate is 32.4, implying a prospective dividend yield of 4.0%.
Current consensus EPS estimate suggests the PER is 19.5.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 36.00 cents and EPS of 47.40 cents.
At the last closing share price the estimated dividend yield is 4.42%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.17.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 43.4, implying annual growth of 3.8%.
Current consensus DPS estimate is 34.3, implying a prospective dividend yield of 4.2%.
Current consensus EPS estimate suggests the PER is 18.8.

Market Sentiment: 0.6
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: $7.97

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

Goldman Sachs assumes the LAMP refinery will have to be curtailed to around 50% capacity for three months during the December half while Lynas Rare Earths is absorbing start-up costs for Kalgoorlie and Mount Weld.

This means the broker reduces estimates for FY24 and FY25 by -54% and -3%, respectively. Still, Goldman Sachs acknowledges, if LAMP is only temporarily curtailed this simply pushes revenue and earnings further out.

The company is now looking at appealing the Malaysian decision to prohibit importing and processing of rare earth flotation concentrate from Mount Weld and, if unsuccessful, must close its cracking and leaching kilns from July 1.

Goldman Sachs retains a Neutral rating with a $7.45 target.

This report was published on February 15, 2023.

Target price is $7.45 Current Price is $7.97 Difference: minus $0.52 (current price is over target).
If LYC 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 $8.53, suggesting upside of 7.1%(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 52.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.21.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 41.9, implying annual growth of -30.1%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 19.0.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 21.00 cents and EPS of 35.10 cents.
At the last closing share price the estimated dividend yield is 2.63%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.71.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 51.6, implying annual growth of 23.2%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 15.4.

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

NWH    NRW HOLDINGS LIMITED

Mining Sector Contracting – Overnight Price: $2.55

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

Following 1H results for NRW Holdings, Canaccord Genuity now estimates 2H free cash flow (FCF) of more than $100m and suggests a FCF yield approaching 10% is an attractive investment. Buy.

Revenue and earnings (EBITDA) for the 1H were a 4% beat and a -2% miss, respectively, compared to the analyst's forecasts. Management maintained FY23 guidance for both metrics.

Management commentary suggested to the broker near-term contract win potential from the submitted-tenders pipeline.

The Buy rating is maintained and the target increases to $3.07 from $2.63.

This report was published on February 17, 2023.

Target price is $3.07 Current Price is $2.55 Difference: $0.52
If NWH meets the Canaccord Genuity target it will return approximately 20% (excluding dividends, fees and charges).
Current consensus price target is $2.80, suggesting upside 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 17.00 cents and EPS of 23.20 cents.
At the last closing share price the estimated dividend yield is 6.67%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.99.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 23.4, implying annual growth of 7.9%.
Current consensus DPS estimate is 16.9, implying a prospective dividend yield of 6.6%.
Current consensus EPS estimate suggests the PER is 10.9.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 17.00 cents and EPS of 26.00 cents.
At the last closing share price the estimated dividend yield is 6.67%.
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 25.3, implying annual growth of 8.1%.
Current consensus DPS estimate is 16.8, implying a prospective dividend yield of 6.6%.
Current consensus EPS estimate suggests the PER is 10.1.

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

PGH    PACT GROUP HOLDINGS LIMITED

Paper & Packaging – Overnight Price: $1.21

Jarden rates ((PGH)) as Upgrade to Overweight from Underweight (2) –

Despite some improvement in the trajectory of Pact Group's earnings, Jarden remains cautious on the company's full year outlook and maintains its forecast -5.8% below the company's bottom end of guidance. 

The broker believes the risk of an equity raising in the second half is high, and notes deleveraging could minimise risk to finance costs in the current rate environment and to a potential raising. The broker finds Pact Group to be higher risk than peers, particularly given peak gearing levels. 

The rating is upgraded to Overweight from Underweight and the target price of $1.35 is retained.

This report was published on February 16, 2023.

Target price is $1.35 Current Price is $1.21 Difference: $0.14
If PGH meets the Jarden target it will return approximately 12% (excluding dividends, fees and charges).
Current consensus price target is $2.09, suggesting upside of 72.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 2.70 cents and EPS of 15.40 cents.
At the last closing share price the estimated dividend yield is 2.23%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.86.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.8, implying annual growth of 374.6%.
Current consensus DPS estimate is 1.5, implying a prospective dividend yield of 1.2%.
Current consensus EPS estimate suggests the PER is 7.2.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 8.50 cents and EPS of 18.80 cents.
At the last closing share price the estimated dividend yield is 7.02%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.44.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 19.6, implying annual growth of 16.7%.
Current consensus DPS estimate is 7.2, implying a prospective dividend yield of 6.0%.
Current consensus EPS estimate suggests the PER is 6.2.

Market Sentiment: 0.3
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: $60.15

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

First half revenue and earnings were broadly in line with expectations. Goldman Sachs notes three key contract wins over the first half and models five unannounced contract gains in FY23, with three per year on average from FY24.

Management at Pro Medicus has indicated the pipeline of opportunity is strong and the second half will also benefit from the three contract completions.

The Neutral rating and $51.60 target price are retained.

This report was published on February 15, 2023.

Target price is $51.60 Current Price is $60.15 Difference: minus $8.55 (current price is over target).
If PME meets the Goldman Sachs target it will return approximately minus 14% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $48.28, suggesting downside of -19.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 EPS of 56.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 107.41.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 53.3, implying annual growth of 25.1%.
Current consensus DPS estimate is 25.7, implying a prospective dividend yield of 0.4%.
Current consensus EPS estimate suggests the PER is 112.9.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 EPS of 72.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 83.54.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 67.5, implying annual growth of 26.6%.
Current consensus DPS estimate is 32.6, implying a prospective dividend yield of 0.5%.
Current consensus EPS estimate suggests the PER is 89.1.

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

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Moelis rates ((PME)) as Hold (3) –

A significant rise in 1H costs (headcount and expensed R&D) didn't prevent the earnings (EBIT) margin for Pro Medicus rising to 64.8% compared to 64.5% in the previous corresponding period.

While growth in Australia was stronger than Moelis expected, the US result was weaker than forecast due to timing around a major implementation, which was out of management's control.

While no FY23 guidance was provided, management pointed to a stronger 2H after implementing three large contracts in the 1H.

The broker raises its target to $64.40 from $56.74. The Hold rating is maintained as the opportunity for a long runway of growth is already seen as factored into the share price.

This report was published on February 17, 2023.

Target price is $64.40 Current Price is $60.15 Difference: $4.25
If PME meets the Moelis target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $48.28, suggesting downside of -19.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 27.00 cents and EPS of 57.70 cents.
At the last closing share price the estimated dividend yield is 0.45%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 104.25.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 53.3, implying annual growth of 25.1%.
Current consensus DPS estimate is 25.7, implying a prospective dividend yield of 0.4%.
Current consensus EPS estimate suggests the PER is 112.9.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 32.00 cents and EPS of 71.20 cents.
At the last closing share price the estimated dividend yield is 0.53%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 84.48.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 67.5, implying annual growth of 26.6%.
Current consensus DPS estimate is 32.6, implying a prospective dividend yield of 0.5%.
Current consensus EPS estimate suggests the PER is 89.1.

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

RBL    REDBUBBLE LIMITED

Retailing – Overnight Price: $0.46

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

First half results reflected an increased focus on cost reductions and market optimisation. Redbubble plans to return to positive cash flow by the end of 2023.

Goldman Sachs considers this the right strategy but remains unconvinced this can be achieved without trading off more aspirational medium-term targets.

If, on the other hand, a more robust growth profile can be demonstrated for the medium term, the broker acknowledges free cash flow could be stronger than forecast. Neutral maintained. Target is $0.60.

This report was published on February 15, 2023.

Target price is $0.60 Current Price is $0.46 Difference: $0.145
If RBL meets the Goldman Sachs target it will return approximately 32% (excluding dividends, fees and charges).
Current consensus price target is $0.59, suggesting upside of 30.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 17.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 2.68.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -18.7, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 2.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 22.75.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -8.0, 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: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

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Jarden rates ((RBL)) as Neutral (3) –

Jarden lowers estimates for revenue by -5% in FY23 and FY24, driven by a downgrade to guidance from Redbubble. Marketplace revenue has been guided to be slightly below FY22 from "broadly in line" at the first half update in January.

The  main issue is customer demand, which has been weaker, particularly in the US. Jarden remains cautious about the sustainability of the growth trajectory post  the pandemic yet the cost reduction strategy should help with cash flow during times of uncertainty.

Neutral maintained with a target of $0.52.

This report was published on February 15, 2023.

Target price is $0.52 Current Price is $0.46 Difference: $0.065
If RBL meets the Jarden target it will return approximately 14% (excluding dividends, fees and charges).
Current consensus price target is $0.59, suggesting upside of 30.4%(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 minus 12.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 3.67.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -18.7, 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:

Jarden forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 5.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 8.58.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -8.0, 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: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

RFG    RETAIL FOOD GROUP LIMITED

Food, Beverages & Tobacco – Overnight Price: $0.09

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

Ahead of Retail Food's first half release, Shaw and Partners had been anticipating a full year earnings result of $28.7m, in line with the company's $26.0m-29.0m guidance range. 

The broker expects the resolution of the Michel's Patisserie class action to be a significant positive for the stock that will result in increased investor interest. Recent de-risking drives an increased target price from the broker. 

The Buy rating and target price of $0.15 are retained.

This report was published on February 17, 2023.

Target price is $0.15 Current Price is $0.09 Difference: $0.059
If RFG meets the Shaw and Partners target it will return approximately 65% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of 0.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.38.

Forecast for FY24:

Shaw and Partners forecasts a full year FY24 dividend of 0.50 cents and EPS of 0.90 cents.
At the last closing share price the estimated dividend yield is 5.49%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.11.

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

RIC    RIDLEY CORPORATION LIMITED

Agriculture – Overnight Price: $2.16

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

Another strong result from Ridley Corp according to Wilsons, with the company achieving 13% year-on-year earnings growth in its first half.

The broker highlights this was driven by a 6% beat in bulk stockfeeds, where wet weather and a challenging crop transition did not impact as much as initially expected. 

The company is yet to provide full year guidance, but expects second half year-on-year earnings growth, supported by ongoing delivery of management's growth plan. 

The Overweight rating is retained and the target price increases to $2.51 from $2.21.

This report was published on February 17, 2023.

Target price is $2.51 Current Price is $2.16 Difference: $0.35
If RIC meets the Wilsons target it will return approximately 16% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 8.20 cents and EPS of 12.80 cents.
At the last closing share price the estimated dividend yield is 3.80%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.88.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 9.00 cents and EPS of 14.20 cents.
At the last closing share price the estimated dividend yield is 4.17%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.21.

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

SKC    SKYCITY ENTERTAINMENT GROUP LIMITED

Gaming – Overnight Price: $2.38

Jarden rates ((SKC)) as Buy (1) –

First half trading was underpinned by a record result from NZ properties. This produced a record EBITDA margin although revenue was lower than Jarden expected. SkyCity Entertainment has reinstated the interim dividend and expanded the headroom on debt liquidity.

This is encouraging as the broker notes the overhang of Australian regulatory matters and the buyback of the Auckland car park are still to be resolved.

No provision has been made for an AUSTRAC penalty which the broker thinks is understandable given the early stage of responding to the proceedings. Jarden retains a Buy rating and NZ$3.40 target.

This report was published on February 15, 2023.

Current Price is $2.38. Target price not assessed.
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 10.94 cents and EPS of 16.95 cents.
At the last closing share price the estimated dividend yield is 4.60%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.04.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 15.49 cents and EPS of 18.23 cents.
At the last closing share price the estimated dividend yield is 6.51%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.06.

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

SUL    SUPER RETAIL GROUP LIMITED

Automobiles & Components – Overnight Price: $13.27

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

First half profit of $218.3m from Super Retail was at the upper end of the company's guidance range, and a very strong result by Wilsons standards.

The broker highlighted both Super Cheap and Rebel delivered profitability growth ahead of its expectations, and described the latter as the "most promising vertical". 

The Rebel brand reported a year-on-year revenue increase of 12.6% and earnings increase of 22.2%, and the broker sees room for expansion amid ongoing store rollout. 

The Market Weight rating is retained and the target price increases to $12.10 from $11.80.

This report was published on February 17, 2023.

Target price is $12.10 Current Price is $13.27 Difference: minus $1.17 (current price is over target).
If SUL meets the Wilsons target it will return approximately minus 9% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $13.15, suggesting downside of -0.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 71.40 cents and EPS of 116.70 cents.
At the last closing share price the estimated dividend yield is 5.38%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.37.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 112.4, implying annual growth of 5.2%.
Current consensus DPS estimate is 70.6, implying a prospective dividend yield of 5.3%.
Current consensus EPS estimate suggests the PER is 11.8.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 61.90 cents and EPS of 98.00 cents.
At the last closing share price the estimated dividend yield is 4.66%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.54.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 92.7, implying annual growth of -17.5%.
Current consensus DPS estimate is 64.6, implying a prospective dividend yield of 4.9%.
Current consensus EPS estimate suggests the PER is 14.3.

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

SXL    SOUTHERN CROSS MEDIA GROUP LIMITED

Print, Radio & TV – Overnight Price: $1.01

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

Following 1H results, Canaccord Genuity downgrades its rating for Southern Cross Media to Hold from Buy and lowers its target to $1.15 from $1.60.

In the wake of buoyant conditions during covid, regional parts of the business are reverting to the norm, though the broker holds greater concerns for Regional TV.

Overall Television revenue posted a material miss, which Canaccord suspects is partly due to a loss in audience share. Metro Radio outperformed and Digital Audio maintained a solid rate of growth.

An interim fully franked dividend of 4.6cps was declared.

This report was published on February 17, 2023.

Target price is $1.15 Current Price is $1.01 Difference: $0.135
If SXL meets the Canaccord Genuity target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $1.26, suggesting upside of 23.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 8.50 cents and EPS of 10.50 cents.
At the last closing share price the estimated dividend yield is 8.37%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.67.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 10.7, implying annual growth of N/A.
Current consensus DPS estimate is 8.3, implying a prospective dividend yield of 8.2%.
Current consensus EPS estimate suggests the PER is 9.5.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 9.00 cents and EPS of 11.20 cents.
At the last closing share price the estimated dividend yield is 8.87%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.06.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 9.3, implying annual growth of -13.1%.
Current consensus DPS estimate is 6.9, implying a prospective dividend yield of 6.8%.
Current consensus EPS estimate suggests the PER is 10.9.

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

THL    TOURISM HOLDINGS LIMITED

Overnight Price: $3.63

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

Tourism Holding Rentals has provided guidance following the merger with Apollo. Underlying FY23 net profit is expected to be above NZ$75m.

Ahead of the results, Jarden makes an equivalent increase in FY23 rental revenue estimates, and expects a modest increase in FY24 as more favourable operating conditions flow into the first half.

Overweight maintained, amid some uncertainty about the recovery profile. Target is raised to NZ$4.56 from NZ$4.29.

This report was published on February 15, 2023.

Current Price is $3.63. Target price not assessed.
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 23.42 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.50.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 19.87 cents and EPS of 28.35 cents.
At the last closing share price the estimated dividend yield is 5.47%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.81.

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

TTM    TITAN MINERALS LIMITED

Gold & Silver – Overnight Price: $0.06

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

Maiden drilling results for the Meseta gold prospect, within the Linderos project in Southern Ecuador show intersection with several high-grade gold/silver/base metal veins.

Canaccord Genuity continues to rate Titan Minerals as a Speculative Buy with a price target of 20c.

This report was published on February 17, 2023.

Target price is $0.20 Current Price is $0.06 Difference: $0.14
If TTM meets the Canaccord Genuity target it will return approximately 233% (excluding dividends, fees and charges).

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

TWE    TREASURY WINE ESTATES LIMITED

Food, Beverages & Tobacco – Overnight Price: $13.81

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

Treasury Wine Estates has pointed to underperformance of its 19Crimes premium range in the US as a key driver of an underwhelming first half result, but has an improvement plan to drive better volumes in the coming half. Group sale were -8% below Goldman Sachs' expectations, somewhat offset by  a 115 basis point improvement to margins. 

Looking at opportunity in China, the broker continues to anticipate a return to pre-tariff sales in the region of $400m by FY26-27.

Goldman Sachs highlights recovery to this level by FY25 could provide 14% upside to group earnings and 29-34% upside for the the target price.

The Buy rating and target price of $14.70 are retained.

This report was published on February 16, 2023.

Target price is $14.70 Current Price is $13.81 Difference: $0.89
If TWE meets the Goldman Sachs target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $14.16, suggesting upside of 2.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 35.00 cents and EPS of 50.00 cents.
At the last closing share price the estimated dividend yield is 2.53%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.62.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 50.8, implying annual growth of 39.3%.
Current consensus DPS estimate is 35.2, implying a prospective dividend yield of 2.5%.
Current consensus EPS estimate suggests the PER is 27.2.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 39.00 cents and EPS of 56.00 cents.
At the last closing share price the estimated dividend yield is 2.82%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.66.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 60.0, implying annual growth of 18.1%.
Current consensus DPS estimate is 40.9, implying a prospective dividend yield of 3.0%.
Current consensus EPS estimate suggests the PER is 23.0.

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

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

Treasury Wine Estates' result was weaker than Jarden had expected, with the broker largely attributing a -3% earnings miss to a significant second quarter slowing in the US.

While there is some risk around a deteriorating backdrop in the US, the company is guiding to a steadying of trends over the coming half. 

Jarden has cut its full year earnings -5%, partly on a reinterpretation of the company's definition of "strong" growth, but feels momentum remains positive. 

The Overweight rating was retained and the target price increased to $13.60 from $13.40. 

This report was published on February 16, 2023.

Target price is $13.60 Current Price is $13.81 Difference: minus $0.21 (current price is over target).
If TWE meets the Jarden target it will return approximately minus 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $14.16, suggesting upside of 2.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 EPS of 54.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.48.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 50.8, implying annual growth of 39.3%.
Current consensus DPS estimate is 35.2, implying a prospective dividend yield of 2.5%.
Current consensus EPS estimate suggests the PER is 27.2.

Forecast for FY24:

Jarden forecasts a full year FY24 EPS of 63.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.82.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 60.0, implying annual growth of 18.1%.
Current consensus DPS estimate is 40.9, implying a prospective dividend yield of 3.0%.
Current consensus EPS estimate suggests the PER is 23.0.

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

WES    WESFARMERS LIMITED

Consumer Products & Services – Overnight Price: $48.54

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

Outperformance from Bunnings, Kmart Group and WesCEF drove a better than expected first half from Wesfarmers, according to Goldman Sachs, with the company delivering a 7% sales beat and 6% higher earnings than the broker expected. 

The company expects Bunnings to remain resilient given a still strong building and renovation pipeline, and that Kmart Group will benefit from its value advantage.

The company's Mount Holland lithium project looks to have first sales by FY24. Results are reflected in a 4% sales and up to 2% earnings increase to the broker's forecasts. 

The Sell rating is retained and the target price increases to $42.70 from $42.20.

This report was published on February 16, 2023.

Target price is $42.70 Current Price is $48.54 Difference: minus $5.84 (current price is over target).
If WES meets the Goldman Sachs target it will return approximately minus 12% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $50.20, suggesting upside of 3.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 184.00 cents and EPS of 216.00 cents.
At the last closing share price the estimated dividend yield is 3.79%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.47.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 220.8, implying annual growth of 6.3%.
Current consensus DPS estimate is 180.8, implying a prospective dividend yield of 3.7%.
Current consensus EPS estimate suggests the PER is 22.0.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 171.00 cents and EPS of 201.00 cents.
At the last closing share price the estimated dividend yield is 3.52%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.15.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 234.9, implying annual growth of 6.4%.
Current consensus DPS estimate is 194.0, implying a prospective dividend yield of 4.0%.
Current consensus EPS estimate suggests the PER is 20.7.

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

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