Australian Broker Call *Extra* Edition – Mar 24, 2023

This story features ALPHA HPA LIMITED, and other companies. For more info SHARE ANALYSIS: A4N

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)

A4N   ACL   APE   BML   BXB   COD   CXL   ERD   GTK   HLS   HSN   IFM   LRS   MCR (2)   PAN   PDI   RMS   RRL   SHV (2)   SIG   STA   STN   TBN (2)   WES  

A4N    ALPHA HPA LIMITED

Aluminium, Bauxite & Alumina – Overnight Price: $0.66

Bell Potter rates ((A4N)) as Speculative Buy (1) –

Alpha HPA  has announced an agreement with a global technology partner enabling the manufacture of sapphire glass, used in LED lighting, optics and consumer electronic manufacturing.

The sapphire glass will be manufactured at the company's high-purity alumina products (HPA) project, named HPA First, located in Gladstone.

The volume of the company's HPA which will be value added into sapphire glass has not been disclosed, though Bell Potter points out even small volumes could provide a material improvement to revenues.

The Buy rating and $1.02 target are maintained.

This report was published on March 24, 2023.

Target price is $1.02 Current Price is $0.66 Difference: $0.365
If A4N 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 FY22:

Bell Potter forecasts a full year FY22 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 131.00.

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 72.78.

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

ACL    AUSTRALIAN CLINICAL LABS LIMITED

Healthcare services – Overnight Price: $3.79

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

Australian Clinical Labs reported a -33% revenue decline over the first half to $360m, and while a -4% miss to Goldman Sachs's forecasts, the broker points out covid-related revenues declined -83% year-on-year while non-covid revenues lifted 2%. 

The broker feels it is worth pointing out the composition of the result, given a the trajectory and profitability of Australian Clinical Labs' core business has long been a key investor debate.

The Neutral rating and target price of $3.30 are retained.

This report was published on March 21, 2023.

Target price is $3.30 Current Price is $3.79 Difference: minus $0.49 (current price is over target).
If ACL meets the Goldman Sachs target it will return approximately minus 13% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 EPS of 20.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.95.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 EPS of 19.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.95.

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

APE    EAGERS AUTOMOTIVE LIMITED

Automobiles & Components – Overnight Price: $13.35

Bell Potter rates ((APE)) as Upgrade to Buy from Hold (1) –

Bell Potter upgrades its rating for Eagers Automotive to Buy from Hold on valuation after making minor forecast changes relating to the joint venture with the Australian distributor of BYD electric vehicles.

In support of the upgrade, the broker notes potential catalysts in the form of increased sales of BYD vehicles over the coming month, the successful transfer/sale of Scotts Refrigerated Logistics warehouses to new tenants and further acquisitions.

The $15.25 target price is maintained.

This report was published on March 24, 2023.

Target price is $15.25 Current Price is $13.35 Difference: $1.9
If APE meets the Bell Potter target it will return approximately 14% (excluding dividends, fees and charges).
Current consensus price target is $14.68, suggesting upside of 8.3%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 71.00 cents and EPS of 115.80 cents.
At the last closing share price the estimated dividend yield is 5.32%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.53.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 113.9, implying annual growth of -6.1%.
Current consensus DPS estimate is 69.3, implying a prospective dividend yield of 5.1%.
Current consensus EPS estimate suggests the PER is 11.9.

Forecast for FY24:

Bell Potter forecasts a full year FY24 dividend of 71.00 cents and EPS of 105.90 cents.
At the last closing share price the estimated dividend yield is 5.32%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.61.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 102.7, implying annual growth of -9.8%.
Current consensus DPS estimate is 65.9, implying a prospective dividend yield of 4.9%.
Current consensus EPS estimate suggests the PER is 13.2.

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

BML    BOAB METALS LIMITED

Mining – Overnight Price: $0.19

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

Front end engineering and design for Boab Metals' Sorby Hills project has commenced following the recent definitive feasibility study release. Shaw and Partners considers Sorby Hills one of the best base metals projects of emerging ASX-listed resource companies. 

The definitive feasibility study saw the measured resource increase 78% and iron ore reserves increase 12%. Boab Metals is now working to finalise binding offtake agreements. 

Shaw and Partners expects the stock to re-rate as agreements are signed and finance milestones met. 

The Buy rating and target price of $0.75 are retained.

This report was published on March 21, 2023.

Target price is $0.75 Current Price is $0.19 Difference: $0.56
If BML meets the Shaw and Partners target it will return approximately 295% (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 2.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 8.26.

Forecast for FY24:

Shaw and Partners 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 27.14.

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

BXB    BRAMBLES LIMITED

Transportation & Logistics – Overnight Price: $13.33

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

Jarden suggests the overall price/cost environment is becoming increasingly positive for Brambles and inventory levels are falling, consistent with recent de-stocking commentary.

Freight and diesel costs are normalising while food and beverage inventory growth continues, explains the broker.

Importantly, the spread between lumber input costs and wooden pallet pricing is at a record level, which the analyst notes is providing a growing tailwind into the 2H.

The Overweight rating and $13.15 target are maintained.

This report was published on March 21, 2023.

Target price is $13.15 Current Price is $13.33 Difference: minus $0.18 (current price is over target).
If BXB meets the Jarden target it will return approximately minus 1% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $14.09, suggesting upside of 6.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 EPS of 69.43 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.20.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 80.8, implying annual growth of N/A.
Current consensus DPS estimate is 42.5, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 16.4.

Forecast for FY24:

Jarden forecasts a full year FY24 EPS of 71.91 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.54.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 88.1, implying annual growth of 9.0%.
Current consensus DPS estimate is 47.4, implying a prospective dividend yield of 3.6%.
Current consensus EPS estimate suggests the PER is 15.1.

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

COD    CODA MINERALS LIMITED

Mining – Overnight Price: $0.20

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

Shaw and Partners' Buy (High Risk) rating and 90c target for Coda Minerals are under review after the release of scoping study results on the Elizabeth Creek copper-cobalt project in South Australia.

Management intends to now take the project to the pre-feasibility study stage.

The study outlines annual production of 25,000t of copper and 1,000t of cobalt at a lifetime average grade of 1.29% and 515ppm (parts per million), respectively.

This report was published on March 24, 2023.

Target price is $0.90 Current Price is $0.20 Difference: $0.695
If COD meets the Shaw and Partners target it will return approximately 339% (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 4.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 4.88.

Forecast for FY24:

Shaw and Partners forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 3.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 5.69.

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

CXL    CALIX LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $4.31

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

Calix has recently announced a memorandum of understanding with Heirloom Carbon Technologies, a move Bell Potter finds significant.

The broker feels the agreement technically and commercially validates Calix's flash calciner technology, highlighting the memorandum outlines key terms for a binding global license and a collaboration agreement for the use of the LEILAC kiln in Heirloom's direct air capture solution. 

The broker finds the growing applications for Calix's flash calciner technology target global challenges. This allows the company to offer a sustainable, and ESG-focsued investing opportunity. 

The Buy rating and target price of $9.00 are retained.

This report was published on March 21, 2023.

Target price is $9.00 Current Price is $4.31 Difference: $4.69
If CXL meets the Bell Potter target it will return approximately 109% (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 10.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 40.28.

Forecast for FY24:

Bell Potter 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 42.67.

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

ERD    EROAD LIMITED

Transportation & Logistics – Overnight Price: $0.62

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

Bell Potter updates its modeling for Eroad following a management guidance update at the end of February as well as the recent investor day.

The model now indicates the existing NZ$90m debt facility will provide sufficient funding through to positive free cash flow in FY26.

While the broker makes moderate downgrades to its forecast earnings, a lower assumed multiple and higher weighted average cost of capital (WACC)) reduce the target to $1.50 from $2.20. Buy.

This report was published on March 23, 2023.

Target price is $1.50 Current Price is $0.62 Difference: $0.875
If ERD meets the Bell Potter target it will return approximately 140% (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 5.38 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 11.63.

Forecast for FY24:

Bell Potter forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 6.47 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 9.66.

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

GTK    GENTRACK GROUP LIMITED

Software & Services – Overnight Price: $2.69

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

Shaw and Partners retains its belief shares of Gentrack Group are too cheap when underlying fundamentals are taken into account.

The broker feels management's FY24 revenue target of $150m is realistic and could be conservative.

Moreover, guidance for margins of between 12-17% in FY24 (compared to 7% in FY22) is largely a utilisation story, with further expansion considered likely in FY25 and beyond, suggests the analyst.

The Buy rating and $4.50 target are retained.

This report was published on March 24, 2023.

Target price is $4.50 Current Price is $2.69 Difference: $1.81
If GTK meets the Shaw and Partners target it will return approximately 67% (excluding dividends, fees and charges).
The company's fiscal year ends in September.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of 8.02 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 33.55.

Forecast for FY24:

Shaw and Partners forecasts a full year FY24 dividend of 0.00 cents and EPS of 10.06 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.73.

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

HLS    HEALIUS LIMITED

Healthcare services – Overnight Price: $3.03

Jarden rates ((HLS)) as Underweight (4) –

Jarden believes other interested parties will emerge now that Australian Clinical Labs ((ACL)) has launched a 'nil premium' takeover offer for Healius.

The broker sees several barriers for the bid including obtaining ACCC approval and, while explaining the bid, the acquirer also provided a 'soft' FY23 earnings (EBIT) downgrade.

The Underweight rating and $2.66 target are unchanged.

This report was published on March 21, 2023.

Target price is $2.66 Current Price is $3.03 Difference: minus $0.37 (current price is over target).
If HLS meets the Jarden target it will return approximately minus 12% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $3.13, suggesting upside of 3.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 3.50 cents and EPS of 6.30 cents.
At the last closing share price the estimated dividend yield is 1.16%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 48.10.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 5.8, implying annual growth of -88.4%.
Current consensus DPS estimate is 1.7, implying a prospective dividend yield of 0.6%.
Current consensus EPS estimate suggests the PER is 51.9.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 5.10 cents and EPS of 11.10 cents.
At the last closing share price the estimated dividend yield is 1.68%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.30.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 13.7, implying annual growth of 136.2%.
Current consensus DPS estimate is 8.5, implying a prospective dividend yield of 2.8%.
Current consensus EPS estimate suggests the PER is 22.0.

Market Sentiment: -0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

HSN    HANSEN TECHNOLOGIES LIMITED

IT & Support – Overnight Price: $4.50

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

Shaw and Partners feels now is the time to own Hansen Technologies stocks, with the share price having declined -10% following the release of the first half result, but with very real potential from merger and acquisitions on the company's horizon.

A stronger second half is expected given reiteration of full year guidance. Shaw and Partners finds Hansen Technologies has proven its defensiveness, and this is yet to be reflected in its valuation. 

The Buy rating and target price of $6.20 are retained.

This report was published on March 22, 2023.

Target price is $6.20 Current Price is $4.50 Difference: $1.7
If HSN meets the Shaw and Partners target it will return approximately 38% (excluding dividends, fees and charges).
Current consensus price target is $6.04, suggesting upside of 32.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 10.00 cents and EPS of 17.30 cents.
At the last closing share price the estimated dividend yield is 2.22%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.01.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 23.3, implying annual growth of 11.4%.
Current consensus DPS estimate is 10.7, implying a prospective dividend yield of 2.3%.
Current consensus EPS estimate suggests the PER is 19.6.

Forecast for FY24:

Shaw and Partners forecasts a full year FY24 dividend of 10.00 cents and EPS of 18.90 cents.
At the last closing share price the estimated dividend yield is 2.22%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.81.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 24.5, implying annual growth of 5.2%.
Current consensus DPS estimate is 11.2, implying a prospective dividend yield of 2.5%.
Current consensus EPS estimate suggests the PER is 18.7.

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

IFM    INFOMEDIA LIMITED

Automobiles & Components – Overnight Price: $1.48

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

After making significant reductions to its amortisation estimates, Bell Potter now forecasts double digit EPS growth in FY24 and FY25 of 15% and 26% for Infomedia.

Apart from EPS upgrades, the broker raises its multiple and lowers its assumed weighted average cost of capital (WACC). Its target price increases to $1.60 from $1.45. The Hold rating is maintained.

This report was published on March 22, 2023.

Target price is $1.60 Current Price is $1.48 Difference: $0.12
If IFM meets the Bell Potter target it will return approximately 8% (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 4.70 cents and EPS of 4.00 cents.
At the last closing share price the estimated dividend yield is 3.18%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 37.00.

Forecast for FY24:

Bell Potter forecasts a full year FY24 dividend of 4.70 cents and EPS of 4.70 cents.
At the last closing share price the estimated dividend yield is 3.18%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.49.

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

LRS    LATIN RESOURCES LIMITED

Mining – Overnight Price: $0.10

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

The resource growth potential at Latin Resources' Salinas lithium project in Brazil has been confirmed, Bell Potter notes, after further drill core assay results at the Colina West zone.

The broker expects material value accretion as Latin Resources adds to the mineral resource estimate at Salinas and ultimately sets out its path to development.

The Buy rating and 22c target are unchanged.

This report was published on March 24, 2023.

Target price is $0.22 Current Price is $0.10 Difference: $0.115
If LRS meets the Bell Potter target it will return approximately 110% (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 minus 0.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 13.13.

Forecast for FY24:

Bell Potter forecasts a full year FY24 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 13.13.

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

MCR    MINCOR RESOURCES NL

Nickel – Overnight Price: $1.54

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

Wyloo Consolidated Investments, which already has a 19.9% stake, has made an on-market cash offer of $1.40/share to acquire the balance of Mincor Resources shares.

Given the recent share price decline due to risks relating to the production ramp-up at the Kambalda Nickel operations, Bell Potter considers the bid opportunistic.

The offer price represents a discount of -11% to the closing price from 30 days prior.

While the broker's target of $1.70 is unchanged, the rating is downgraded to Hold from Buy on valuation.

This report was published on March 23, 2023.

Target price is $1.70 Current Price is $1.54 Difference: $0.155
If MCR meets the Bell Potter target it will return approximately 10% (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 0.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 257.50.

Forecast for FY24:

Bell Potter forecasts a full year FY24 dividend of 0.00 cents and EPS of 29.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.27.

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

Mincor Resources has received a on-market takeover offer from major shareholder Wyloo Group for $1.40 per share, implying an equity value of $760m.

While a 35% premium to the stock's previous closing price at time of writing, Shaw and Partners finds the offer undervalues the long-term potential offered by Mincor Resources. 

While Mincor Resources' share price has halved over the last year, the company continues to focus on re-establishing nickel production in the Kambalda region and production is set to ramp up over 2023. 

Shaw and Partners recommends investors wait on a response from Mincor Resources.

The Buy rating and target price of $2.14 are retained. 

This report was published on March 22, 2023.

Target price is $2.14 Current Price is $1.54 Difference: $0.595
If MCR meets the Shaw and Partners target it will return approximately 39% (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 3.00 cents and EPS of 5.10 cents.
At the last closing share price the estimated dividend yield is 1.94%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.29.

Forecast for FY24:

Shaw and Partners forecasts a full year FY24 dividend of 8.00 cents and EPS of 23.80 cents.
At the last closing share price the estimated dividend yield is 5.18%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.49.

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

PAN    PANORAMIC RESOURCES LIMITED

Nickel – Overnight Price: $0.16

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

Panoramic Resources has released an updated life of mine plan for its Savannah asset, extending mine life two years to more than twelve years total and seeing operating costs increase 14%. 

As Canaccord Genuity points out, expected nickel and copper production are up 22% and 28% respectively from FY24.

These updates see the broker reduce its earnings forecasts by -47% and -37% in FY24 and FY25 respectively, and its free cash flow forecasts -47% and -41%.

The Buy rating is retained and the target price decreases to $0.22 from $0.26.

This report was published on March 21, 2023.

Target price is $0.22 Current Price is $0.16 Difference: $0.06
If PAN 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 0.00 cents.

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

PDI    PREDICTIVE DISCOVERY LIMITED

Gold & Silver – Overnight Price: $0.17

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

Predictive Discovery is in the process of a comprehensive environmental social impact assessment, in conjunction with a scoping study, at its Bankan asset. 

Canaccord Genuity notes the project is located within a conservation area buffer zone where mining is not currently permitted, and the ongoing studies should see the project permitted during 2024. 

The broker expects permitting to be a notable catalyst for the stock, anticipating it will come at a cost of an additional 1% royalty in addition to the standard 5% government royalty. The additional payments will fund environmental programs and local development. 

The Speculative Buy rating and target price of $0.37 are retained.

This report was published on March 21, 2023.

Target price is $0.37 Current Price is $0.17 Difference: $0.205
If PDI meets the Canaccord Genuity target it will return approximately 124% (excluding dividends, fees and charges).

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

RMS    RAMELIUS RESOURCES LIMITED

Gold & Silver – Overnight Price: $1.11

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

Ramelius Resources has made a takeover bid for Breaker Resources ((BRB)), offering to exchange one Ramelius Resources share for every 2.82 Breaker Resources share, equating to 40 cents per Breaker Resources share. 

Breaker Resources has been developing the Lake Roe gold project, a 1.7m ounce resource consisting of three deposits and located just 50 kilometres from Ramelius Resources' Rebecca asset.

The company intends for the acquisition to combine with Rebecca and bolster operations.

The Buy rating and target price of $1.50 are retained. 

This report was published on March 21, 2023.

Target price is $1.50 Current Price is $1.11 Difference: $0.385
If RMS meets the Shaw and Partners target it will return approximately 35% (excluding dividends, fees and charges).
Current consensus price target is $1.38, suggesting upside of 22.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 2.00 cents and EPS of 12.10 cents.
At the last closing share price the estimated dividend yield is 1.79%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.21.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.4, implying annual growth of 475.3%.
Current consensus DPS estimate is 2.2, implying a prospective dividend yield of 1.9%.
Current consensus EPS estimate suggests the PER is 13.5.

Forecast for FY24:

Shaw and Partners forecasts a full year FY24 dividend of 3.00 cents and EPS of 15.20 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 7.34.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 12.3, implying annual growth of 46.4%.
Current consensus DPS estimate is 3.5, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 9.2.

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

RRL    REGIS RESOURCES LIMITED

Gold & Silver – Overnight Price: $1.81

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

In Bell Potter's view, ongoing merger and acquisition activity in the gold sector has highlighted Regis Resources' value.

The broker feels Regis Resources' assets would be a meaningful acquisition for any large producer, but sees the best strategic fit with Evolution Mining ((EVN)).

Evolution Mining, so says Bell Potter, offers an established, successful operating track record, while Regis Resources would be able to meet most of the company's acquisition objectives, including upgrading the quality of its portfolio. 

The Buy rating and target price of $2.75 are retained.

This report was published on March 21, 2023.

Target price is $2.75 Current Price is $1.81 Difference: $0.94
If RRL meets the Bell Potter target it will return approximately 52% (excluding dividends, fees and charges).
Current consensus price target is $2.27, suggesting upside of 24.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 1.00 cents and EPS of 7.60 cents.
At the last closing share price the estimated dividend yield is 0.55%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.82.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 4.2, implying annual growth of 130.8%.
Current consensus DPS estimate is 1.6, implying a prospective dividend yield of 0.9%.
Current consensus EPS estimate suggests the PER is 43.6.

Forecast for FY24:

Bell Potter forecasts a full year FY24 dividend of 2.00 cents and EPS of 23.80 cents.
At the last closing share price the estimated dividend yield is 1.10%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.61.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.5, implying annual growth of 269.0%.
Current consensus DPS estimate is 2.0, implying a prospective dividend yield of 1.1%.
Current consensus EPS estimate suggests the PER is 11.8.

Market Sentiment: 0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

SHV    SELECT HARVESTS LIMITED

Agriculture – Overnight Price: $3.92

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

At spot almond prices, Select Harvests' FY24 earnings would far exceed FY20-23 levels, notes Bell Potter. As funding and covenant waivers are in place, buying shares now below market net asset value (NAV) is considered attractive.

In the near term, the broker advises volumes are soft, but pricing is stronger. Recent inclement weather during the bloom has resulted in Californian spot almond values firming back towards November 2022 levels.

Also, lead indicators for FY24 crop costs have continued to weaken with fertiliser and ag-chem pricing materially down year-on-year, while water prices remain subdued.

The Buy rating is unchanged and the target eases to $5.50 from $5.65.

This report was published on March 22, 2023.

Target price is $5.50 Current Price is $3.92 Difference: $1.58
If SHV meets the Bell Potter target it will return approximately 40% (excluding dividends, fees and charges).
The company's fiscal year ends in September.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 27.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 14.25.

Forecast for FY24:

Bell Potter forecasts a full year FY24 dividend of 2.00 cents and EPS of 17.50 cents.
At the last closing share price the estimated dividend yield is 0.51%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.40.

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

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

On the one hand, Select Harvests' trading update noted an ongoing rally in the almond price, on the other hand, Wilsons points out the FY23 total crop volume will be materially lower than management's previous estimate of 30kt.

Volumes are down as the early-harvest of the Nonpareil variety has been around -30% short of expectation, explains the analyst.

The current share price looks attractive to the broker. The Overweight rating is retained and the target eases to $5.52 from $5.65.

This report was published on March 22, 2023.

Target price is $5.52 Current Price is $3.92 Difference: $1.6
If SHV meets the Wilsons target it will return approximately 41% (excluding dividends, fees and charges).
The company's fiscal year ends in September.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 40.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 9.80.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of 25.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.31.

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

SIG    SIGMA HEALTHCARE LIMITED

Health & Nutrition – Overnight Price: $0.62

Shaw and Partners rates ((SIG)) as Hold (3) –

FY23 earnings (EBIT) for Sigma Healthcare, which has a January financial year-end, were broadly in line with the consensus forecast.

Shaw and Partners' earnings forecast was missed due to an underestimation of costs, largely related to warehousing and delivery.

Revenue for the period exceeded the broker's estimate by 5%, with Chemist Warehouse sales rising by 13.6% versus the year prior.

Management is half-way through its turnaround objectives and still targets an earnings margin in the range 1.5% to 2.5% over the medium term, notes the analyst. The FY23 margin was 0.5%.

Shaw and Partners updates its forecasts for the FY23 result and the upcoming sale of the company's hospital operations. The Hold rating and 65c target are unchanged.

This report was published on March 24, 2023.

Target price is $0.65 Current Price is $0.62 Difference: $0.03
If SIG meets the Shaw and Partners target it will return approximately 5% (excluding dividends, fees and charges).
Current consensus price target is $0.56, suggesting downside of -6.3%(ex-dividends)
The company's fiscal year ends in January.

Forecast for FY24:

Shaw and Partners forecasts a full year FY24 dividend of 1.30 cents and EPS of 0.90 cents.
At the last closing share price the estimated dividend yield is 2.10%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 68.89.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1.7, implying annual growth of N/A.
Current consensus DPS estimate is 1.4, implying a prospective dividend yield of 2.3%.
Current consensus EPS estimate suggests the PER is 35.3.

Forecast for FY25:

Shaw and Partners forecasts a full year FY25 EPS of 1.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 47.69.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1.3, implying annual growth of -23.5%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 46.2.

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

STA    STRANDLINE RESOURCES LIMITED

Mineral Sands – Overnight Price: $0.32

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

Strandline Resources is gearing up for an imminent start to production of its final products, being premium zircon, rutile, ilmenite and a heavy metal concentrate.

With the company working towards commissioning its mineral separation plant, Shaw and Partners has reviewed its outlook for the first time since commissioning started. 

The broker notes build up has been slower than it had anticipated, driving it to lower forecasts to reflect -47,000 tonnes fewer sales in FY23. Despite this, Strandline Resources remains a top pick among emerging resource companies. 

The Buy rating and target price of $0.80 are retained.

This report was published on March 21, 2023.

Target price is $0.80 Current Price is $0.32 Difference: $0.48
If STA meets the Shaw and Partners target it will return approximately 150% (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 2.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.00.

Forecast for FY24:

Shaw and Partners forecasts a full year FY24 dividend of 1.00 cents and EPS of 7.30 cents.
At the last closing share price the estimated dividend yield is 3.13%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.38.

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

STN    SATURN METALS LIMITED

Gold & Silver – Overnight Price: $0.17

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

Saturn Metals has released impressive high-grade intercepts at its Apollo Hill Gold project, according to Shaw and Partners. It's felt the project will be developed as a heap leach operation.

In light of the intercepts, the analyst expects an upgrade to the Apollo Hill resource in mid-2023 and highlights the project is host to some zones of very high-grade mineralisation.

However, to reflect the Australian market’s unfamiliarity with heap leach operations, the broker applies a -50% valuation discount, which results in a 44c target, down from 93c. Buy.

This report was published on March 23, 2023.

Target price is $0.44 Current Price is $0.17 Difference: $0.265
If STN meets the Shaw and Partners target it will return approximately 151% (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 1.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 12.50.

Forecast for FY24:

Shaw and Partners forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 1.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 15.91.

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

TBN    TAMBORAN RESOURCES LIMITED

NatGas – Overnight Price: $0.23

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

Shaw and Partners recently initiated coverage on natural gas exploration and development company Tamboran Resources with a Buy rating and 50c target, which both remain unchanged.

What has changed is the completion of the 25-stage stimulation program at the Amungee 2H well in EP98 in the Beetaloo Basin.

The company will shortly be conducting 30-day flow tests at the well, and the results will be a significant de-risking event, according to the broker.

This report was published on March 23, 2023.

Target price is $0.50 Current Price is $0.23 Difference: $0.27
If TBN meets the Shaw and Partners target it will return approximately 117% (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 2.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 10.95.

Forecast for FY24:

Shaw and Partners forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 0.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 57.50.

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

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

Shaw and Partners has initiated coverage on Tamboran Resources, finding the company well placed to play a part in the solution to the east coast gas crisis.

The broker points out the east coast needs new gas suppliers with production from Bass Strait and the Cooper Basin declining, and Tamboran Resources offers access to the emerging Beetaloo Basin gas province. 

With 1.9m acres and around 150 trillion cubic feet of prospective gas resources, Tamboran Resources is the leading acreage holder and operator in the Beetaloo, and has secured gas sales agreements that should provide a pathway to near-term cash flow. 

The broker initiates coverage with a Buy rating and a target price of $0.50.

This report was published on March 21, 2023.

Target price is $0.50 Current Price is $0.23 Difference: $0.27
If TBN meets the Shaw and Partners target it will return approximately 117% (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 2.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 10.95.

Forecast for FY24:

Shaw and Partners forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 0.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 57.50.

Market Sentiment: 1.0
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: $49.60

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

Amazon is now operating at scale in A&NZ and has the largest reach of any retail brand in Australia, points out Jarden. Earnings risk for incumbents is expected to rise.

Electronics, home and garden and general merchandise retailers that rely on third-party brands without exclusivity are most at risk, suggests the analyst. Wesfarmers is one of several companies that falls into this category.

The Overweight rating and $46 target are retained.

This report was published on March 21, 2023.

Target price is $46.00 Current Price is $49.60 Difference: minus $3.6 (current price is over target).
If WES meets the Jarden target it will return approximately minus 7% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $50.20, suggesting upside of 1.4%(ex-dividends)

Forecast for FY23:

Current consensus EPS estimate is 221.6, implying annual growth of 6.7%.
Current consensus DPS estimate is 181.6, implying a prospective dividend yield of 3.7%.
Current consensus EPS estimate suggests the PER is 22.3.

Forecast for FY24:

Current consensus EPS estimate is 236.6, implying annual growth of 6.8%.
Current consensus DPS estimate is 195.2, implying a prospective dividend yield of 3.9%.
Current consensus EPS estimate suggests the PER is 20.9.

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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