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

This story features A2B AUSTRALIA LIMITED, and other companies. For more info SHARE ANALYSIS: A2B

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)

A2B   ADA   AIA   AIZ   ALQ   BBN   BKT   BLD   CNB   CUV   DOW   HMC   JRV   MCR   MND   MPL   NHF   OML   PLS   RWC   SVW  

A2B    A2B AUSTRALIA LIMITED

Transportation & Logistics – Overnight Price: $1.57

Petra Capital rates ((A2B)) as Buy (1) –

The sale of A2B Australia's O'Riordan Street property has occurred sooner than Petra Capital expected and for a price that was in line with independent valuation.

Given a special dividend is likely by the end of the year and there are tangible signs of a turnaround in operations the broker reiterates a Buy rating with a $1.90 target.

The company has exchanged contracts for the sale of the property for $78m and entered a three-year leaseback arrangement. Net proceeds will be returned to shareholders as a fully franked special dividend by the end of 2023.

This report was published on March 31, 2023.

Target price is $1.90 Current Price is $1.57 Difference: $0.33
If A2B meets the Petra Capital target it will return approximately 21% (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 5.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.61.

Forecast for FY24:

Petra Capital forecasts a full year FY24 dividend of 63.00 cents and EPS of 6.20 cents.
At the last closing share price the estimated dividend yield is 40.13%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.32.

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

ADA    ADACEL TECHNOLOGIES LIMITED

Software & Services – Overnight Price: $0.60

Taylor Collison rates ((ADA)) as Outperform (2) –

First half revenue was in line with expectations although EBITDA was materially below. Taylor Collison believes Adacel Technologies has an opportunity to double annual revenue over the next 18 months, given the award of six tenders. Approximately 20% of the contracted base is up for renewal over this period.

Management has guided to US$4.4-4.6m for EBITDA and net profit off US$2.4-2.6m in FY23. The broker reduces estimates to reflect this guidance and also reduces FY24 estimates by -48% to reflect the delay in Estonia and lower ATOP revenue. Outperform maintained.

This report was published on March 24, 2023.

Current Price is $0.60. Target price not assessed.
The company's fiscal year ends in June.

Forecast for FY23:

Taylor Collison forecasts a full year FY23 dividend of 4.82 cents and EPS of 4.53 cents.
At the last closing share price the estimated dividend yield is 8.03%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.26.

Forecast for FY24:

Taylor Collison forecasts a full year FY24 dividend of 4.82 cents and EPS of 5.11 cents.
At the last closing share price the estimated dividend yield is 8.03%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.74.

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

AIA    AUCKLAND INTERNATIONAL AIRPORT LIMITED

Infrastructure & Utilities – Overnight Price: $8.18

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

In the near term, Jarden believes greater customer focus on the carbon footprint will be a small headwind to demand for Auckland International Airport.

Given modest operating leverage, this will likely have a negligible earnings impact. The broker retains an Underweight rating and NZ$7.65 target.

This report was published on March 30, 2023.

Current Price is $8.18. Target price not assessed.
Current consensus price target is $7.00, suggesting downside of -14.4%(ex-dividends)

Forecast for FY23:

Current consensus EPS estimate is 8.8, implying annual growth of N/A.
Current consensus DPS estimate is 8.1, implying a prospective dividend yield of 1.0%.
Current consensus EPS estimate suggests the PER is 93.0.

Forecast for FY24:

Current consensus EPS estimate is 17.5, implying annual growth of 98.9%.
Current consensus DPS estimate is 17.4, implying a prospective dividend yield of 2.1%.
Current consensus EPS estimate suggests the PER is 46.7.

This company reports in NZD. 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

AIZ    AIR NEW ZEALAND LIMITED

Transportation & Logistics – Overnight Price: $0.71

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

In assessing the winners and losers from decarbonisation, Jarden envisages greater customer focus on carbon footprint will be a small headwind for Air New Zealand. The broker would expect the airline to manage the fleet/capacity to the extent the headwind emerges.

All necessary investment by the airline is likely to be part of an ongoing course-of-business fleet replacement/asset upgrade program. Yet next-generation long-all aircraft are potentially more than 20 years away, in the broker's view. Overweight rating maintained.  Target is NZ$0.87.

This report was published on March 30, 2023.

Current Price is $0.71. Target price not assessed.
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 3.65 cents and EPS of 12.03 cents.
At the last closing share price the estimated dividend yield is 5.10%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.94.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 4.37 cents and EPS of 7.75 cents.
At the last closing share price the estimated dividend yield is 6.12%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.23.

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

ALQ    ALS LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $12.97

Goldman Sachs rates ((ALQ)) as Reinstate Coverage with Buy (1) –

Goldman Sachs reinstates coverage of ALS Ltd with a Buy rating and $14.60 target. The business is positioned to benefit from long-term green metal trends and, the broker assesses, remains relatively insulated from labour shortages.

The commodities business should experience high margins for the short term while the life sciences grows. Moreover, Goldman Sachs believes a strategic focus on life sciences testing should result in sustainably higher margins and a longer revenue growth path as well as more stable recurring revenue.

This report was published on April 2, 2023.

Target price is $14.60 Current Price is $12.97 Difference: $1.63
If ALQ meets the Goldman Sachs target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $12.18, suggesting downside of -6.1%(ex-dividends)
The company's fiscal year ends in March.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 40.00 cents and EPS of 67.00 cents.
At the last closing share price the estimated dividend yield is 3.08%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.36.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 65.3, implying annual growth of 65.4%.
Current consensus DPS estimate is 37.3, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 19.9.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 42.00 cents and EPS of 71.00 cents.
At the last closing share price the estimated dividend yield is 3.24%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.27.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 67.4, implying annual growth of 3.2%.
Current consensus DPS estimate is 40.0, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 19.2.

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

BBN    BABY BUNTING GROUP LIMITED

Apparel & Footwear – Overnight Price: $2.12

Wilsons rates ((BBN)) as Initiation of coverage with Overweight (1) –

Wilsons initiates coverage of Baby Bunting with an Overweight rating and $2.70 target. The company has more than doubled its store network in the seven years since October 2015 and the broker's analysis implies revenue can exceed $1bn on reaching its targeted number of stores.

The broker assesses the stock has been oversold and now provides value for investors able to look through the short-term headwinds and recognise the opportunity for strong revenue growth and gross margin expansion.

This report was published on March 31, 2023.

Target price is $2.70 Current Price is $2.12 Difference: $0.58
If BBN meets the Wilsons target it will return approximately 27% (excluding dividends, fees and charges).
Current consensus price target is $2.76, suggesting upside of 30.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 11.20 cents and EPS of 17.10 cents.
At the last closing share price the estimated dividend yield is 5.28%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.40.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.0, implying annual growth of 7.7%.
Current consensus DPS estimate is 12.3, implying a prospective dividend yield of 5.8%.
Current consensus EPS estimate suggests the PER is 13.3.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 13.40 cents and EPS of 20.00 cents.
At the last closing share price the estimated dividend yield is 6.32%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.60.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 19.7, implying annual growth of 23.1%.
Current consensus DPS estimate is 13.4, implying a prospective dividend yield of 6.3%.
Current consensus EPS estimate suggests the PER is 10.8.

Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

BKT    BLACK ROCK MINING LIMITED

New Battery Elements – Overnight Price: $0.14

Petra Capital rates ((BKT)) as Initiation of coverage with Buy (1) –

Petra Capital initiates coverage on Black Rock Mining with a Buy rating and $0.69 target. At the end of 2022 demand for graphite from the battery sector crossed over 50% of total demand, the broker points out.

Significantly, in the lithium market, once 50% of total demand from batteries was reached in 2020, prices rose tenfold within two years.

The most important offtake option comes from POSCO, the largest shareholder. Black Brock has signed a non-binding MOU with Tanzania Zambia Railway Authority for the transport of graphite from the Mahenge project by the existing rail line to the port of Dar es Salaam.

This report was published on March 31, 2023.

Target price is $0.69 Current Price is $0.14 Difference: $0.545
If BKT meets the Petra Capital target it will return approximately 376% (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 0.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 48.33.

Forecast for FY24:

Petra Capital 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 36.25.

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

BLD    BORAL LIMITED

Building Products & Services – Overnight Price: $3.67

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

Goldman Sachs initiates coverage on Boral with a Neutral rating and $4 target. The broker suggests FY22 represented a particularly low base and the top line appears to have stabilised with an inflection point in margins.

A relatively benign volume outlook and current market tightness suggests prices should remain supportive. Nevertheless, the broker assesses a significant uplift in profitability is largely reflected in consensus estimates.

This report was published on April 2, 2023.

Target price is $4.00 Current Price is $3.67 Difference: $0.33
If BLD meets the Goldman Sachs target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $3.49, suggesting downside of -4.9%(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 11.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 33.36.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 9.3, implying annual growth of N/A.
Current consensus DPS estimate is 2.0, implying a prospective dividend yield of 0.5%.
Current consensus EPS estimate suggests the PER is 39.5.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 0.00 cents and EPS of 15.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.47.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 14.2, implying annual growth of 52.7%.
Current consensus DPS estimate is 6.0, implying a prospective dividend yield of 1.6%.
Current consensus EPS estimate suggests the PER is 25.8.

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

CNB    CARNABY RESOURCES LIMITED

Mining – Overnight Price: $1.29

Petra Capital rates ((CNB)) as Initiation of coverage with Buy (1) –

Petra Capital initiates coverage of Carnaby Resources with a Buy rating and $1.82 target. Assay results from new drilling continue to extend the Mount Hope Central discovery.

The broker notes an aggressive drill program is quickly scaling up the potential and confirming its view that the deposit will be the company's first option for a toll milling development.

The Greater Duchess project is considered one of the more de-risked copper development opportunities in Australia.

This report was published on March 31, 2023.

Target price is $1.82 Current Price is $1.29 Difference: $0.53
If CNB meets the Petra Capital target it will return approximately 41% (excluding dividends, fees and charges).

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

CUV    CLINUVEL PHARMACEUTICALS LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $19.25

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

Clinuvel Pharmaceuticals presented a few insights into its OTC product and pharmaceutical pipeline at an investor briefing. Wilsons welcomes the clarity in strategy for each of the distinct product lines and the ongoing clinical programs.

CYACELLE, now launched in Europe, has a clear relevance to EPP patients, while the DNA repair products have relevance for Xeroderma Pigmentosum as well as those with the greatest risk factors for skin cancer.

The broker assesses the diversity in the business is yet to be fully appreciated by the market.  Overweight maintained. Target is $30.07.

This report was published on March 31, 2023.

Target price is $30.07 Current Price is $19.25 Difference: $10.82
If CUV meets the Wilsons target it will return approximately 56% (excluding dividends, fees and charges).

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

DOW    DOWNER EDI LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $3.32

Goldman Sachs rates ((DOW)) as Reinstate Coverage with Neutral (3) –

Goldman Sachs reinstates coverage of Downer EDI with a Neutral rating and $3.90 target. The business has recently experienced disruptions and earnings downgrades while new management is implementing a corporate restructure and cost reduction program.

The broker is cautious for the short term but believes the company provides a defensive earnings profile as well as exposure to decarbonisation expenditure. Strong infrastructure expenditure in the short term will grow the aggregate stock and ultimately result in higher maintenance requirements.

This report was published on April 2, 2023.

Target price is $3.90 Current Price is $3.32 Difference: $0.58
If DOW meets the Goldman Sachs target it will return approximately 17% (excluding dividends, fees and charges).
Current consensus price target is $4.05, suggesting upside of 22.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 13.00 cents and EPS of 23.00 cents.
At the last closing share price the estimated dividend yield is 3.92%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.43.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 22.9, implying annual growth of 7.5%.
Current consensus DPS estimate is 12.0, implying a prospective dividend yield of 3.6%.
Current consensus EPS estimate suggests the PER is 14.5.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 20.00 cents and EPS of 30.00 cents.
At the last closing share price the estimated dividend yield is 6.02%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.07.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 29.8, implying annual growth of 30.1%.
Current consensus DPS estimate is 17.0, implying a prospective dividend yield of 5.1%.
Current consensus EPS estimate suggests the PER is 11.1.

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

HMC    HMC CAPITAL LIMITED

Wealth Management & Investments – Overnight Price: $3.75

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

HMC Capital, along with Healthco Healthcare and Wellness REIT ((HCW)), has acquired a $1.2bn healthcare portfolio comprising 11 private hospital assets operated by Healthscope ((HSO)). The transaction will be funded by a $1.55m equity raising for HMC Capital and $320m for HCW.

The company has reiterated its FY23 distribution guidance of $0.12 with the new units raised not entitled to a second half dividend.

Jarden believes the market has been waiting for the company to demonstrate deal flows and this is a positive step in the right direction. Target is raised to $5.60 from $5.40 and an Overweight rating is maintained.

This report was published on March 30, 2023.

Target price is $5.60 Current Price is $3.75 Difference: $1.85
If HMC meets the Jarden target it will return approximately 49% (excluding dividends, fees and charges).
Current consensus price target is $4.87, suggesting upside of 30.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 12.00 cents and EPS of 21.40 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 17.52.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 20.9, implying annual growth of -20.7%.
Current consensus DPS estimate is 12.0, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 17.9.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 12.00 cents and EPS of 28.00 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 13.39.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 26.1, implying annual growth of 24.9%.
Current consensus DPS estimate is 12.0, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 14.4.

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

JRV    JERVOIS GLOBAL LIMITED

New Battery Elements – Overnight Price: $0.07

Canaccord Genuity rates ((JRV)) as Downgrade to Speculative Buy from Buy (1) –

Jervois Global will cease construction of the Idaho cobalt mine until conditions improve. The decision comes because of low cobalt prices that have affected cash flow projections, as well as delays and cost overruns.

While there may be value in the portfolio, Canaccord Genuity believes management needs to show how it will fund the restart of SMP and deliver firm operating metrics in Finland.

As the business is leveraged to a recovery in the cobalt price, the broker downgrades to Speculative Buy from Buy. Target is reduced to $0.35 from $0.65.

This report was published on March 30, 2023.

Target price is $0.35 Current Price is $0.07 Difference: $0.285
If JRV meets the Canaccord Genuity target it will return approximately 438% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 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 3.25.

Forecast for FY24:

Canaccord Genuity 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 3.25.

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: $1.40

Jarden rates ((MCR)) as Downgrade to Underweight from Neutral (4) –

Mincor Resources has withdrawn FY23 production guidance amid the substantial uncertainty created by the rejection of off-specification nickel ore by BHP Nickel West ((BHP)) at its Kambalda concentrator.

Meanwhile, the offer of $1.40 cash for Mincor Resources from Wyloo remains.

Given the operating uncertainty and a corresponding lower valuation, Jarden suspects there are reduced expectations for any potential increase in the bid. Rating is downgraded to Underweight from Neutral and the target is steady at $1.40.

This report was published on March 31, 2023.

Target price is $1.40 Current Price is $1.40 Difference: $0
If MCR meets the Jarden target it will return approximately 0% (excluding dividends, fees and charges).
Current consensus price target is $1.40, suggesting downside of -1.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 EPS of minus 11.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 12.61.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 0.1, implying annual growth of N/A.
Current consensus DPS estimate is 1.0, implying a prospective dividend yield of 0.7%.
Current consensus EPS estimate suggests the PER is 1400.0.

Forecast for FY24:

Jarden forecasts a full year FY24 EPS of 0.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 350.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.8, implying annual growth of 18700.0%.
Current consensus DPS estimate is 1.3, implying a prospective dividend yield of 0.9%.
Current consensus EPS estimate suggests the PER is 7.4.

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

MND    MONADELPHOUS GROUP LIMITED

Mining Sector Contracting – Overnight Price: $12.72

Goldman Sachs rates ((MND)) as Reinstate Coverage with Sell (5) –

Goldman Sachs reinstates coverage of Monadelphous Group with a Sell rating and $11.40 target. While the company has diversified into maintenance and the broker is confident in management, growth still relies on engineering and construction.

Of all E&C stocks under coverage, Goldman Sachs believes Monadelphous is most exposed to the mining construction dynamic, hence the Sell rating.

The broker remains cautious about revenue and margins for the near term as numerous pipeline projects are more likely to go to tender and the company may struggle to capture sufficient share.

This report was published on April 2, 2023.

Target price is $11.40 Current Price is $12.72 Difference: minus $1.32 (current price is over target).
If MND meets the Goldman Sachs target it will return approximately minus 10% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $13.23, suggesting upside of 4.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 49.00 cents and EPS of 54.00 cents.
At the last closing share price the estimated dividend yield is 3.85%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.56.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 55.9, implying annual growth of 1.8%.
Current consensus DPS estimate is 48.9, implying a prospective dividend yield of 3.8%.
Current consensus EPS estimate suggests the PER is 22.8.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 52.00 cents and EPS of 58.00 cents.
At the last closing share price the estimated dividend yield is 4.09%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.93.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 65.9, implying annual growth of 17.9%.
Current consensus DPS estimate is 56.3, implying a prospective dividend yield of 4.4%.
Current consensus EPS estimate suggests the PER is 19.3.

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

MPL    MEDIBANK PRIVATE LIMITED

Insurance – Overnight Price: $3.43

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

After factoring in the private health insurance margin outlook for Medibank Private, Jarden upgrades estimates for earnings per share in FY24 and FY25 by 6%.

Despite the impact of lockdowns, hospital claims per policy in the first half were still -4% below the pre-pandemic levels, or -9-10% lower when adjusting for inflation.

The broker believes claims inflation per policy can remain below 3% out to FY25, despite higher inflation indexation going forward as hospital contracts renew. The broker retains an Overweight rating and raises the target to $3.70 from $3.45.

This report was published on March 31, 2023.

Target price is $3.70 Current Price is $3.43 Difference: $0.27
If MPL meets the Jarden target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $3.43, suggesting upside of 0.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 15.10 cents and EPS of 18.30 cents.
At the last closing share price the estimated dividend yield is 4.40%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.74.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.4, implying annual growth of 21.7%.
Current consensus DPS estimate is 14.1, implying a prospective dividend yield of 4.1%.
Current consensus EPS estimate suggests the PER is 19.7.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 16.90 cents and EPS of 19.80 cents.
At the last closing share price the estimated dividend yield is 4.93%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.32.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.1, implying annual growth of 4.0%.
Current consensus DPS estimate is 14.8, implying a prospective dividend yield of 4.3%.
Current consensus EPS estimate suggests the PER is 19.0.

Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

NHF    NIB HOLDINGS LIMITED

Insurance – Overnight Price: $7.22

Jarden rates ((NHF)) as Upgrade to Overweight from Neutral (2) –

After factoring in the private health insurance margin outlook for nib Holdings, Jarden upgrades estimates for earnings per share by 6% in FY24 and by 2% in FY25.

Despite the impact of lockdowns, hospital claims per policy in the first half were still -4% below the pre-pandemic levels, or -9-10% lower when adjusting for inflation.

The broker believes claims inflation per policy can remain below 3% out to FY25, despite higher inflation indexation going forward as hospital contracts renew. The broker upgrades to Overweight from Neutral and raises the target to $7.50 from $7.40.

This report was published on March 31, 2023.

Target price is $7.50 Current Price is $7.22 Difference: $0.28
If NHF meets the Jarden target it will return approximately 4% (excluding dividends, fees and charges).
Current consensus price target is $7.48, suggesting upside of 3.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 28.00 cents and EPS of 39.80 cents.
At the last closing share price the estimated dividend yield is 3.88%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.14.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 41.2, implying annual growth of 39.2%.
Current consensus DPS estimate is 27.0, implying a prospective dividend yield of 3.7%.
Current consensus EPS estimate suggests the PER is 17.5.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 30.00 cents and EPS of 40.70 cents.
At the last closing share price the estimated dividend yield is 4.16%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.74.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 43.6, implying annual growth of 5.8%.
Current consensus DPS estimate is 28.2, implying a prospective dividend yield of 3.9%.
Current consensus EPS estimate suggests the PER is 16.6.

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

OML    OOH!MEDIA LIMITED

Out of Home Advertising – Overnight Price: $1.67

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

Contract renewals are the main focus for the market throughout 2023 with a large number up for grabs.

Goldman Sachs is confident that oOh!media will continue the revenue trends experienced in February and March and, along with easier comparables in May and June, this will underpin a strong first half result.

The broker reiterates a Buy rating with a $1.90 target, up 12%.

This report was published on April 2, 2023.

Target price is $1.90 Current Price is $1.67 Difference: $0.235
If OML meets the Goldman Sachs target it will return approximately 14% (excluding dividends, fees and charges).
Current consensus price target is $1.83, suggesting upside of 9.9%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 6.00 cents and EPS of 11.00 cents.
At the last closing share price the estimated dividend yield is 3.60%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.14.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 9.0, implying annual growth of 70.1%.
Current consensus DPS estimate is 4.6, implying a prospective dividend yield of 2.8%.
Current consensus EPS estimate suggests the PER is 18.5.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 7.00 cents and EPS of 13.00 cents.
At the last closing share price the estimated dividend yield is 4.20%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.81.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 10.7, implying annual growth of 18.9%.
Current consensus DPS estimate is 5.6, implying a prospective dividend yield of 3.4%.
Current consensus EPS estimate suggests the PER is 15.6.

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

PLS    PILBARA MINERALS LIMITED

New Battery Elements – Overnight Price: $3.73

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

Management at Pilbara Minerals is targeting first ore at the P1000 project in the March 2025 quarter and full production following
commissioning and ramp-up at the end of the September 2025 quarter.

These targets are set following a final investment decision for the project, which included an estimate of -$560m for capex compared to the analyst's forecast of around -$500m. This expenditure is for the concentrator and non-process infrastructure.

After incorporating higher capex into forecasts, partly offset by higher near-term production estimates, the broker's target price falls to $4.80 from $4.90. Neutral.

This report was published on March 30, 2023.

Target price is $4.80 Current Price is $3.73 Difference: $1.07
If PLS meets the Goldman Sachs target it will return approximately 29% (excluding dividends, fees and charges).
Current consensus price target is $5.58, suggesting upside of 49.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 24.50 cents and EPS of 93.80 cents.
At the last closing share price the estimated dividend yield is 6.57%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 3.98.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 83.8, implying annual growth of 341.5%.
Current consensus DPS estimate is 26.7, implying a prospective dividend yield of 7.2%.
Current consensus EPS estimate suggests the PER is 4.5.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 19.20 cents and EPS of 57.30 cents.
At the last closing share price the estimated dividend yield is 5.15%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.51.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 78.3, implying annual growth of -6.6%.
Current consensus DPS estimate is 19.3, implying a prospective dividend yield of 5.2%.
Current consensus EPS estimate suggests the PER is 4.8.

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

RWC    RELIANCE WORLDWIDE CORP. LIMITED

Building Products & Services – Overnight Price: $3.83

Jarden rates ((RWC)) as Neutral (3) –

Jarden revises adjusted EBITDA forecasts up by 4.8% for FY24 and 7.0% for FY25. This stems from a belief that interior remodelling work could hold up better than the overall repair market.

Moreover, Reliance Worldwide has around 60% of its revenue from the Americas in repair, which is less sensitive to interest-rate and economic cycles.

The broker raises the target to $4.10 from $3.80 and maintains a Neutral rating.

This report was published on March 31, 2023.

Target price is $3.80 Current Price is $3.83 Difference: minus $0.03 (current price is over target).
If RWC 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 $3.86, suggesting upside of 0.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 12.86 cents and EPS of 25.29 cents.
At the last closing share price the estimated dividend yield is 3.36%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.14.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 25.9, implying annual growth of N/A.
Current consensus DPS estimate is 13.4, implying a prospective dividend yield of 3.5%.
Current consensus EPS estimate suggests the PER is 14.8.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 11.99 cents and EPS of 24.12 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 15.88.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 27.2, implying annual growth of 5.0%.
Current consensus DPS estimate is 13.4, implying a prospective dividend yield of 3.5%.
Current consensus EPS estimate suggests the PER is 14.1.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

SVW    SEVEN GROUP HOLDINGS LIMITED

Mining Sector Contracting – Overnight Price: $23.91

Goldman Sachs rates ((SVW)) as Reinstate Coverage with Buy (1) –

Goldman Sachs reinstates coverage of Seven Group with a Buy rating and $27.90 target. The broker remains constructive on both infrastructure and mining equipment expenditure in the short term to which the business is leveraged positively.

Coates and WesTrac can benefit from the evolving investment cycle. The broker incorporates a fleet renewal impact for WesTrac while Coates stands to benefit from a structural shift to asset-light construction business models.

This report was published on April 2, 2023.

Target price is $27.90 Current Price is $23.91 Difference: $3.99
If SVW meets the Goldman Sachs target it will return approximately 17% (excluding dividends, fees and charges).
Current consensus price target is $26.10, suggesting upside of 9.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 50.00 cents and EPS of 180.00 cents.
At the last closing share price the estimated dividend yield is 2.09%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.28.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 184.9, implying annual growth of 20.3%.
Current consensus DPS estimate is 48.3, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 12.9.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 56.00 cents and EPS of 225.00 cents.
At the last closing share price the estimated dividend yield is 2.34%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.63.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 192.2, implying annual growth of 3.9%.
Current consensus DPS estimate is 46.2, implying a prospective dividend yield of 1.9%.
Current consensus EPS estimate suggests the PER is 12.4.

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

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