Australian Broker Call *Extra* Edition – Mar 23, 2023

This story features LIFE360 INC, and other companies. For more info SHARE ANALYSIS: 360

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)

360   APX   AVC   BCB   EVT   FSF   IPH (2)   KLS   MMI   NTO   PPH   SM1 (2)   SMR   SOP   TLX  

360    LIFE360 INC

Software & Services – Overnight Price: $4.89

Bell Potter rates ((360)) as Buy (1) –

As previously flagged, Life360 delivered both revenue and adjusted earnings at the lower end of guidance range for 2022. Annualised monthly, the key unknown of the result, beat guidance at US$224m in December but missed at $230m in January. 

Bell Potter notes the company also reiterated guidance for 2023, although revenue growth guidance of 35% has been replaced by a revenue range of US$300-310m, which the broker points out equates to growth of 31-36%. Bell Potter makes only modest changes of less than -3% to earnings forecasts for the next two years.

The Buy rating is retained and the target price decreases to $8.75 from $9.00.

This report was published on March 20, 2023.

Target price is $8.75 Current Price is $4.89 Difference: $3.86
If 360 meets the Bell Potter target it will return approximately 79% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of 4.66 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 105.03.

Forecast for FY24:

Bell Potter forecasts a full year FY24 dividend of 0.00 cents and EPS of 21.53 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.71.

This company reports in USD. 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

APX    APPEN LIMITED

IT & Support – Overnight Price: $2.74

Bell Potter rates ((APX)) as Downgrade to Sell from Hold (5) –

While Bell Potter retains its outlook for Appen, it has downgraded its rating on the stock given its target price (at time of writing) represented a -13% discount to the share price. 

As per the broker's last update following the release of Appen's 2022 result, it continues to expect a -3% revenue decline over 2023 after the company guided to a soft start to the year. 

The rating is downgraded to Sell from Hold and the target price of $2.25 is retained. 

This report was published on March 17, 2023.

Target price is $2.25 Current Price is $2.74 Difference: minus $0.49 (current price is over target).
If APX meets the Bell Potter target it will return approximately minus 18% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $2.25, suggesting downside of -17.9%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY23:

Bell Potter 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 19.57.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -12.3, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY24:

Bell Potter forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 6.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 39.71.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -4.0, 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: -0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

AVC    AUCTUS INVESTMENT GROUP LIMITED

Wealth Management & Investments – Overnight Price: $0.93

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

Auctus Investment's December-half result appears to have broadly met Canaccord Genuity's forecasts.

Net assets fell to $30.3m from $34.7m at the end of June 2022, and the broker expects the company's net cash position will fall to $5.4m from $7.1m in FY23.

Overall, the broker expects FY23 earnings (EBITDA) to fall -15%.

Buy rating and $1.20 target price retained.

This report was published on March 17, 2023.

Target price is $1.20 Current Price is $0.93 Difference: $0.27
If AVC meets the Canaccord Genuity target it will return approximately 29% (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 3.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.00.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of 4.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.25.

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

BCB    BOWEN COKING COAL LIMITED

Coal – Overnight Price: $0.25

Petra Capital rates ((BCB)) as Buy (1) –

Bowen Coking Coal's December-half loss appears to have disappointed Petra Capital with sales proving a miss and June-half sales to date also lagging, and the broker now expects March-quarter sales will also prove a miss.

 On the upside, March-quarter operations kicked back in.

Meanwhile, commissioning is under way for Burton CHPP and management advises first coal is expected this month and is on track.

Buy rating retained. Target price falls to 48c from 50c.

This report was published on March 17, 2023.

Target price is $0.48 Current Price is $0.25 Difference: $0.23
If BCB meets the Petra Capital target it will return approximately 92% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Petra Capital forecasts a full year FY23 dividend of 0.00 cents and EPS of 0.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 35.71.

Forecast for FY24:

Petra Capital forecasts a full year FY24 dividend of 3.00 cents and EPS of 7.30 cents.
At the last closing share price the estimated dividend yield is 12.00%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 3.42.

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

EVT    EVT LIMITED

Travel, Leisure & Tourism – Overnight Price: $11.96

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

A stronger lineup of blockbuster releases over the second half of the fiscal year should prove beneficial to EVT Ltd, with Jarden anticipating it will drive 22% underlying revenue growth year-on-year despite the period cycling strong volumes and box office numbers. Further, it expects the company's premiumisation strategy to drive average per admission revenue growth. 

Jarden remains just below consensus revenue forecasts for FY23, but just ahead for FY24 assuming better Entertainment revenue and Hospitality margins. 

The Overweight rating is retained and the target price decreases to $17.61 from $17.74.

This report was published on March 16, 2023.

Target price is $17.61 Current Price is $11.96 Difference: $5.65
If EVT meets the Jarden target it will return approximately 47% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 18.70 cents and EPS of 42.00 cents.
At the last closing share price the estimated dividend yield is 1.56%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.48.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 21.70 cents and EPS of 71.60 cents.
At the last closing share price the estimated dividend yield is 1.81%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.70.

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

FSF    FONTERRA SHAREHOLDERS FUND

Dairy – Overnight Price: $2.99

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

While Fonterra Shareholders Fund's share price has languished over the last two years, Jarden now sees catalysts coming together for a potential re-rate for the company. 

Fonterra has already twice upgraded full year earnings guidance, now 55-75 cents per share, which off the back of a strong 35 cents per share in the previous year starts to offer some consistency, the broker opines.

The fund has a large capital program ahead, but Jarden was encouraged by its choice to return $800m from the $1bn sale of Soprole. 

The Overweight rating is retained and the target price increases to NZ$3.84 from NZ$3.81.

This report was published on March 17, 2023.

Current Price is $2.99. Target price not assessed.
The company's fiscal year ends in July.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 31.89 cents and EPS of 64.95 cents.
At the last closing share price the estimated dividend yield is 10.66%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.60.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 21.04 cents and EPS of 35.07 cents.
At the last closing share price the estimated dividend yield is 7.04%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.53.

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

IPH    IPH LIMITED

Legal – Overnight Price: $7.50

Jarden rates ((IPH)) as Downgrade to Neutral from Buy (3) –

IPH has announced a cybersecurity incident having detected unauthorised access to its IT environment in mid March. The breach encompassed the IPH head office, as well as member firms Spruson and Ferguson and Griffith Hack, and primarily involved access to the document management system and practice management system. 

While noting it is early to fully assess impacts, Jarden expects to see incremental costs related to the IT labour required to work through and fix the incident, while client and revenue losses remain a major potential risk. 

Uncertainty sees Jarden take a more cautious approach, with the rating downgraded to Neutral from Buy and the target price decreasing to $9.32 from $10.12.

This report was published on March 17, 2023.

Target price is $9.32 Current Price is $7.50 Difference: $1.82
If IPH meets the Jarden target it will return approximately 24% (excluding dividends, fees and charges).
Current consensus price target is $10.85, suggesting upside of 44.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 EPS of 41.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.94.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 43.5, implying annual growth of 80.6%.
Current consensus DPS estimate is 32.2, implying a prospective dividend yield of 4.3%.
Current consensus EPS estimate suggests the PER is 17.2.

Forecast for FY24:

Jarden forecasts a full year FY24 EPS of 45.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.38.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 45.4, implying annual growth of 4.4%.
Current consensus DPS estimate is 33.8, implying a prospective dividend yield of 4.5%.
Current consensus EPS estimate suggests the PER is 16.5.

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

---

Petra Capital rates ((IPH)) as Buy (1) –

IPH has responded to its cyber incident and instituted a business continuity plan, but Petra Capital spies some disruption.

The broker calculates the exposure to client sensitive data at up to 10%, not to mention reputational damage.

All up, the broker expects the company's market footprint and enduring client relationship should save the day and that the core business will be retained.

FY23 EPS forecasts fall -4.6%. Target price falls to $10.50 from $10.75.

This report was published on March 17, 2023.

Target price is $10.50 Current Price is $7.50 Difference: $3
If IPH meets the Petra Capital target it will return approximately 40% (excluding dividends, fees and charges).
Current consensus price target is $10.85, suggesting upside of 44.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Petra Capital forecasts a full year FY23 dividend of 32.30 cents and EPS of 42.00 cents.
At the last closing share price the estimated dividend yield is 4.31%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.86.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 43.5, implying annual growth of 80.6%.
Current consensus DPS estimate is 32.2, implying a prospective dividend yield of 4.3%.
Current consensus EPS estimate suggests the PER is 17.2.

Forecast for FY24:

Petra Capital forecasts a full year FY24 dividend of 34.00 cents and EPS of 44.70 cents.
At the last closing share price the estimated dividend yield is 4.53%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.78.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 45.4, implying annual growth of 4.4%.
Current consensus DPS estimate is 33.8, implying a prospective dividend yield of 4.5%.
Current consensus EPS estimate suggests the PER is 16.5.

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

KLS    KELSIAN GROUP LIMITED

Transportation & Logistics – Overnight Price: $5.99

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

Kelsian Group has announced the acquisition of All Aboard America! Holdings, its first international purchase in more than a decade, observes Canaccord Genuity.

Management's anticipation of high single-digit EPS accretion matches Cannacord Genuity's forecasts.

The broker believes All Aboard America! will offer a strong springboard into North America and should yield significant medium term growth and support the company's international strategy.

Rating is upgraded to Buy from Hold. Target price rises to $7.80 from $7.10.

This report was published on March 17, 2023.

Target price is $7.80 Current Price is $5.99 Difference: $1.81
If KLS meets the Canaccord Genuity target it will return approximately 30% (excluding dividends, fees and charges).
Current consensus price target is $7.76, suggesting upside of 29.6%(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 27.00 cents.
At the last closing share price the estimated dividend yield is 2.84%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.19.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 32.6, implying annual growth of 36.4%.
Current consensus DPS estimate is 18.1, implying a prospective dividend yield of 3.0%.
Current consensus EPS estimate suggests the PER is 18.4.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 21.00 cents and EPS of 38.00 cents.
At the last closing share price the estimated dividend yield is 3.51%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.76.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 40.1, implying annual growth of 23.0%.
Current consensus DPS estimate is 22.3, implying a prospective dividend yield of 3.7%.
Current consensus EPS estimate suggests the PER is 14.9.

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

MMI    METRO MINING LIMITED

Coal – Overnight Price: $0.01

Petra Capital rates ((MMI)) as Upgrade to Buy from Hold (1) –

As Metro Mining has accessed around $80m in additional liquidity, expansion plans have been de-risked, according to Petra Capital.

The broker's rating is upgraded to Buy from Hold and the target increases to 4.7c from 1.2c on an increased multiple.

The Nebari Natural Resources Credit Fund will provide up to US$30M in two tranches, and principal repayments on the company's existing shareholder loans have been deferred by 12 months, until June 2024.

This report was published on March 14, 2023.

Target price is $0.05 Current Price is $0.01 Difference: $0.034
If MMI meets the Petra Capital target it will return approximately 262% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY23:

Petra Capital forecasts a full year FY23 dividend of 0.00 cents and EPS of 0.00 cents.

Forecast for FY24:

Petra Capital forecasts a full year FY24 dividend of 0.00 cents and EPS of 0.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 2.17.

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

NTO    NITRO SOFTWARE LIMITED

IT & Support – Overnight Price: $2.18

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

Goldman Sachs finds Nitro Software well positioned heading into its new fiscal year, with annual recurring revenue from FY22 above the midpoint of guidance expected to drive 20% revenue growth in the coming year while  year-end cash of US$28m provides a runway to cash flow breakeven in the second half. 

The company is yet to provide guidance for the year ahead, but is expected to provide guidance in late April. The board recently expressed its preference to be fully acquired by the Potentia consortium.

The Neutral rating and target price of $2.10 are retained.

This report was published on March 16, 2023.

Target price is $2.10 Current Price is $2.18 Difference: minus $0.08 (current price is over target).
If NTO meets the Goldman Sachs target it will return approximately minus 4% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in December.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 11.64 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 18.73.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 7.28 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 29.97.

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

PPH    PUSHPAY HOLDINGS LIMITED

Software & Services – Overnight Price: $1.28

Jarden rates ((PPH)) as Neutral (3) –

Pushpay Holdings has received a revised offer at NZ$1.42 a share, and while the company has agreed to the scheme it remains subject to shareholder approval. The bid remains a -0.7% to the midpoint of the valuation provided by the independent adviser, but up 6.0% on the previous offer. 

Ahead of a new scheme meeting, which is to be held as soon as practicable, Pushpay Holdings has received early indications of in favour votes from seven of its largest New Zealand-based institutional shareholders, six of which previously voted against the scheme. 

The Neutral rating is retained and the target price increases to NZ$1.42 from NZ$1.34.

This report was published on March 17, 2023.

Current Price is $1.28. Target price not assessed.
Current consensus price target is $1.32, suggesting upside of 2.7%(ex-dividends)
The company's fiscal year ends in March.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 0.00 cents and EPS of 2.76 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 46.49.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 4.4, 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 29.2.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 0.00 cents and EPS of 4.37 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.44.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 5.4, implying annual growth of 22.7%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 23.8.

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

SM1    SYNLAIT MILK LIMITED

Dairy – Overnight Price: $2.35

Bell Potter rates ((SM1)) as Buy (1) –

Synlait Milk downgraded full year net profit guidance ahead of its first half results release, guiding to NZ$15-25m.

This number is a miss to Bell Potter's expected $35.8m, with the broker highlighting drivers of the downgrade include order deferrals from major infant milk formula customers, alongside inflationary cost pressures, lower milk production levels and higher capital funding costs.

The company also warns its previous two-year recovery plan now looks to take three years, which Bell Potter feels implies a lower than expected exit rate in the current fiscal year. The broker lowers its earnings per share forecasts -11%, -12% and -11% through to FY25.

The Buy rating is retained and the target price decreases to $3.20 from $4.00.

This report was published on March 20, 2023.

Target price is $3.20 Current Price is $2.35 Difference: $0.85
If SM1 meets the Bell Potter target it will return approximately 36% (excluding dividends, fees and charges).
The company's fiscal year ends in July.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of 8.47 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.74.

Forecast for FY24:

Bell Potter forecasts a full year FY24 dividend of 0.00 cents and EPS of 18.13 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.96.

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

---

Jarden rates ((SM1)) as Overweight (2) –

In advance of 1H results due on March 27, Synlait Milk has issued FY23 profit guidance of NZ$15-25m, well below the NZ$53m expected by consensus and the NZ$54m anticipated by Jarden.

The broker is disappointed by the guidance downgrade and its implied impacts on FY24. The speed and size of the downgrade was a shock as a pre-Christmas update by the company didn't contemplate any change versus full-year consensus.

Management cited a material reduction in advanced nutrition demand, operational and SAP software stability challenges, as well as an increasing cost base thanks to rising inflation and interest rates.

The target falls to NZ$3.25 from NZ$3.80, the Overweight rating is unchanged.

This report was published on March 20, 2023.

Current Price is $2.35. Target price not assessed.
The company's fiscal year ends in July.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 0.00 cents and EPS of 6.83 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 34.40.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 0.00 cents and EPS of 20.77 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.31.

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

SMR    STANMORE RESOURCES LIMITED

Coal – Overnight Price: $3.31

Petra Capital rates ((SMR)) as Buy (1) –

BHP Group ((BHP)) is selling its Daunia and Blackwater met coal mines in the Bowen Basin in QLD, and Stanmore Resources has been formally invited to participate. 

Petra Capital feels the company will need to remain fiscally disciplined given it has no boundary coal. Management is not expected to be interested in Blackwater, which shows zero apparent synergies with existing Stanmore operations.

The Buy rating is maintained and a $5.41 target set.

This report was published on March 13, 2023.

Target price is $5.41 Current Price is $3.31 Difference: $2.1
If SMR meets the Petra Capital target it will return approximately 63% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY23:

Petra Capital forecasts a full year FY23 dividend of 30.25 cents and EPS of 116.93 cents.
At the last closing share price the estimated dividend yield is 9.14%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 2.83.

Forecast for FY24:

Petra Capital forecasts a full year FY24 dividend of 34.03 cents and EPS of 80.57 cents.
At the last closing share price the estimated dividend yield is 10.28%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.11.

This company reports in USD. 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

SOP    SYNERTEC CORPORATION LIMITED

Overnight Price: $0.26

Shaw and Partners rates ((SOP)) as Initiation of coverage with Buy (1) –

Shaw and Partners has initiated coverage on Synertec, which is described as "a technology design and development company enabling a low carbon future through innovative technology solutions", with the company recently announcing a commercial order from Santos ((STO)).

In particular, the broker highlights the opportunity in Powerhouse, a technology enabling users to super charge a solar battery array using artificial intelligence to optimise energy discharge, that Shaw and Partners finds to be super scalable.

Discussions are underway for large-scale roll out of Powerhouse to other Santos sites. 

The broker initiates with a Buy rating and a target price of $0.42.

This report was published on March 16, 2023.

Target price is $0.42 Current Price is $0.26 Difference: $0.16
If SOP meets the Shaw and Partners target it will return approximately 62% (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 minus 146.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 0.18.

Forecast for FY24:

Shaw and Partners forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 218.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 0.12.

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

TLX    TELIX PHARMACEUTICALS LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $7.22

Jarden rates ((TLX)) as Buy (1) –

Telix Pharmaceuticals has received FDA approval for an expanded indication for its Illuccix, with the expanded label allowing for the identification and selection of patients who are candidates for PSMA-directed radioligand therapy.

As Jarden points out, the announcement expands the total addressable market by 25%, with Telix Pharmaceuticals suggesting the indication has a 32,000 patient population.

The broker notes the announcement may have been expected by the market, but is still encouraging. The Buy rating is retained and the target price increases to $8.78 from $8.31.

This report was published on March 17, 2023.

Target price is $8.78 Current Price is $7.22 Difference: $1.56
If TLX meets the Jarden target it will return approximately 22% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 10.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 70.78.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 0.00 cents and EPS of 2.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 288.80.

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

---

Disclaimer:
The content of this information does in no way reflect the opinions of FNArena, or of its journalists. In fact we don't have any opinion about the stock market, its value, future direction or individual shares. FNArena solely reports about what the main experts in the market note, believe and comment on. By doing so we believe we provide experienced, intelligent investors with a valuable tool that helps them in making up their own minds, reading market trends and getting a feel for what is happening beneath the surface.

This document is provided for informational purposes only. It does not constitute an offer to sell or a solicitation to buy any security or other financial instrument. FNArena employs very experienced journalists who base their work on information believed to be reliable and accurate, though no guarantee is given that the daily report is accurate or complete. Investors should contact their personal adviser before making any investment decision.

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

Click to view our Glossary of Financial Terms