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

This story features ARISTOCRAT LEISURE LIMITED, and other companies. For more info SHARE ANALYSIS: ALL

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)

ALL   AUB   BPT (2)   CGF   DRE   HT1   KMD (2)   MAH   MPL   NHF   OCL   ORA   PMT   SZL   TPW   WES  

ALL    ARISTOCRAT LEISURE LIMITED

Gaming – Overnight Price: $38.73

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

Aristocrat Leisure reported first half net profit that was up 14% and ahead of estimates although, as Jarden observes, it was assisted by FX and other financial metrics.

Excluding the lack of top-line digital growth, the broker remains constructive on the gambling industry and its resilience to broader economic conditions. Any share price weakness is expected to provide a more attractive opportunity.

Jarden retains an Overweight rating and raises the target to $41.90 from $40.50.

This report was published on May 19, 2023.

Target price is $41.90 Current Price is $38.73 Difference: $3.17
If ALL meets the Jarden target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $44.00, suggesting upside of 13.6%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 59.00 cents and EPS of 197.90 cents.
At the last closing share price the estimated dividend yield is 1.52%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.57.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 194.2, implying annual growth of 35.9%.
Current consensus DPS estimate is 63.7, implying a prospective dividend yield of 1.6%.
Current consensus EPS estimate suggests the PER is 19.9.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 69.00 cents and EPS of 197.90 cents.
At the last closing share price the estimated dividend yield is 1.78%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.57.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 208.0, implying annual growth of 7.1%.
Current consensus DPS estimate is 73.0, implying a prospective dividend yield of 1.9%.
Current consensus EPS estimate suggests the PER is 18.6.

Market Sentiment: 0.9
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

AUB    AUB GROUP LIMITED

Insurance – Overnight Price: $26.54

Jarden rates ((AUB)) as Buy (1) –

Jarden was not surprised that AUB Group has decided to retain its Tysers UK retail business, particularly given the robust performance.

With an equity raising to replenish the balance sheet and support the retention of Tysers, Jarden estimates a further 3-5% accretion were the company to redeploy fully available capital.

AUB Group has announced a $150m institutional placement and up to $15m on a share purchase plan. The broker retains a Buy rating and raises the target to $32 from $30.

This report was published on May 19, 2023.

Target price is $32.00 Current Price is $26.54 Difference: $5.46
If AUB meets the Jarden target it will return approximately 21% (excluding dividends, fees and charges).
Current consensus price target is $29.50, suggesting upside of 11.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 62.00 cents and EPS of 123.80 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 21.44.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 123.5, implying annual growth of 17.0%.
Current consensus DPS estimate is 63.3, implying a prospective dividend yield of 2.4%.
Current consensus EPS estimate suggests the PER is 21.5.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 102.00 cents and EPS of 160.20 cents.
At the last closing share price the estimated dividend yield is 3.84%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.57.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 142.1, implying annual growth of 15.1%.
Current consensus DPS estimate is 76.8, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 18.7.

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

BPT    BEACH ENERGY LIMITED

Crude Oil – Overnight Price: $1.40

Canaccord Genuity rates ((BPT)) as Hold (3) –

Beach Energy has withdrawn guidance regarding the Waitsia stage 2 development, highlighting the labour market tightness in Western Australia.

Canaccord Genuity notes this was always a potential risk, given Clough under administration and subsequent agreement with WeBuild.

The delay will not affect FY23 guidance but has resulted in forecast earnings and production downgrades for FY24. The broker retains a Hold rating and reduces the target to $1.56 from $1.60.

This report was published on May 18, 2023.

Target price is $1.56 Current Price is $1.40 Difference: $0.16
If BPT meets the Canaccord Genuity target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $1.85, suggesting upside of 32.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 2.00 cents and EPS of 18.20 cents.
At the last closing share price the estimated dividend yield is 1.43%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.69.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.8, implying annual growth of -28.1%.
Current consensus DPS estimate is 4.3, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 8.9.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 2.00 cents and EPS of 23.00 cents.
At the last closing share price the estimated dividend yield is 1.43%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.09.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 21.4, implying annual growth of 35.4%.
Current consensus DPS estimate is 5.6, implying a prospective dividend yield of 4.0%.
Current consensus EPS estimate suggests the PER is 6.5.

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

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

Beach Energy has withdrawn its prior cost and scheduled guidance for Waitsia stage 2 because of a tight labour market. Jarden was surprised, expecting contractor Webuild would have provided the means to spend whatever is required to bring the project online by the end of 2023.

While the broker was already factoring in costs above prior guidance and a later start-up, capital expenditure estimates are increased by further $30m and start-up is now expected in the June 2024 quarter.

The broker retains an Overweight rating and reduces the target to $1.75 from $1.80.

This report was published on May 19, 2023.

Target price is $1.75 Current Price is $1.40 Difference: $0.35
If BPT meets the Jarden target it will return approximately 25% (excluding dividends, fees and charges).
Current consensus price target is $1.85, suggesting upside of 32.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 3.00 cents and EPS of 14.30 cents.
At the last closing share price the estimated dividend yield is 2.14%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.79.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.8, implying annual growth of -28.1%.
Current consensus DPS estimate is 4.3, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 8.9.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 8.50 cents and EPS of 20.90 cents.
At the last closing share price the estimated dividend yield is 6.07%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.70.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 21.4, implying annual growth of 35.4%.
Current consensus DPS estimate is 5.6, implying a prospective dividend yield of 4.0%.
Current consensus EPS estimate suggests the PER is 6.5.

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

CGF    CHALLENGER LIMITED

Wealth Management & Investments – Overnight Price: $5.97

Goldman Sachs rates ((CGF)) as Reinstate coverage with Neutral (3) –

Goldman Sachs reinstates coverage with a Neutral rating and $6.45 target for Challenger. A favourable sales environment for higher margin retail annuities results in an improved product value proposition.

Margins are expected to improve with higher yields and the broker has set COE margin estimates at 2.81% in the second half and 2.96% for FY24. 

Goldman Sachs believes guidance for FY23 is achievable, forecasting the mid point of the $485-530m range. Upside is provided by partnerships with Apollo and MS&AD.

This report was published on May 21, 2023.

Target price is $6.45 Current Price is $5.97 Difference: $0.48
If CGF meets the Goldman Sachs target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $7.05, suggesting upside of 18.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 25.00 cents and EPS of 51.00 cents.
At the last closing share price the estimated dividend yield is 4.19%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.71.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 44.8, implying annual growth of 19.3%.
Current consensus DPS estimate is 25.0, implying a prospective dividend yield of 4.2%.
Current consensus EPS estimate suggests the PER is 13.3.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 27.00 cents and EPS of 57.00 cents.
At the last closing share price the estimated dividend yield is 4.52%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.47.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 54.3, implying annual growth of 21.2%.
Current consensus DPS estimate is 28.5, implying a prospective dividend yield of 4.8%.
Current consensus EPS estimate suggests the PER is 11.0.

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

DRE    DREADNOUGHT RESOURCES LIMITED

Mining – Overnight Price: $0.06

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

Dreadnought Resources has completed two extensive auger programs at Tarraji-Yampi, Western Australia. The project is highly prospective for copper gold VMS deposits.

Canaccord Genuity notes this project underpinned the company's market capitalisation prior to discovery of rare earths at Mangaroon in mid 2022. FLEM surveys are underway to define targets for drill testing in September.

Canaccord Genuity's Speculative Buy is retained. Target is unchanged at $0.24.

This report was published on May 18, 2023.

Target price is $0.24 Current Price is $0.06 Difference: $0.18
If DRE meets the Canaccord Genuity target it will return approximately 300% (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

HT1    HT&E LIMITED

Out of Home Advertising – Overnight Price: $1.05

Canaccord Genuity rates ((HT1)) as Buy (1) –

HT&E has experienced a decline in radio revenue over the year to April, yet Canaccord Genuity finds April is likely to be the trough even in a tough market, as the increased government expenditure from the first half of 2022 fades from the comparables.

Looking through the muted growth prospects, the broker believes there is a sustainable 9.6% dividend yield and future potential for multiple re-ratings.

Buy rating maintained. Target is reduced to $1.65 from $1.85.

This report was published on May 18, 2023.

Target price is $1.65 Current Price is $1.05 Difference: $0.6
If HT1 meets the Canaccord Genuity target it will return approximately 57% (excluding dividends, fees and charges).
Current consensus price target is $1.30, suggesting upside of 23.5%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 10.00 cents and EPS of 12.00 cents.
At the last closing share price the estimated dividend yield is 9.52%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.75.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 11.8, implying annual growth of N/A.
Current consensus DPS estimate is 9.2, implying a prospective dividend yield of 8.8%.
Current consensus EPS estimate suggests the PER is 8.9.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 12.00 cents and EPS of 14.00 cents.
At the last closing share price the estimated dividend yield is 11.43%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 13.0, implying annual growth of 10.2%.
Current consensus DPS estimate is 10.3, implying a prospective dividend yield of 9.8%.
Current consensus EPS estimate suggests the PER is 8.1.

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

KMD    KMD BRANDS LIMITED

Sports & Recreation – Overnight Price: $1.06

Canaccord Genuity rates ((KMD)) as Hold (3) –

Canaccord Genuity found the trading update and investor briefing in line with expectations. KMD Brands has reaffirmed EBITDA margins and working capital targets and believes there is scope to deliver NZ$300m in cumulative free cash flow over FY24-26.

The latter is "comfortably" above the broker's expectations, suggesting a double-digit return is on offer for investors. Canaccord Genuity believes execution in this regard should trigger market recognition and a higher ascribed valuation.

The Hold rating and target price of $1.06 are retained.

This report was published on May 19, 2023.

Target price is $1.06 Current Price is $1.06 Difference: minus $0.005 (current price is over target).
If KMD meets the Canaccord Genuity target it will return approximately minus 0% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $1.01, suggesting downside of -5.2%(ex-dividends)
The company's fiscal year ends in July.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 4.94 cents and EPS of 7.23 cents.
At the last closing share price the estimated dividend yield is 4.64%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.74.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.7, implying annual growth of N/A.
Current consensus DPS estimate is 6.6, implying a prospective dividend yield of 6.2%.
Current consensus EPS estimate suggests the PER is 12.2.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 5.76 cents and EPS of 8.51 cents.
At the last closing share price the estimated dividend yield is 5.41%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.52.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 10.3, implying annual growth of 18.4%.
Current consensus DPS estimate is 7.8, implying a prospective dividend yield of 7.3%.
Current consensus EPS estimate suggests the PER is 10.3.

This company reports in NZD. 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

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Jarden rates ((KMD)) as Buy (1) –

KMD Brands has focused on key themes in its investor briefing, such as building global brands and elevating the digital operations.

The company expects to maintain its current level of capital investment while achieving growth via store roll-outs and wholesale and digital expansion.

Jarden retains a Buy rating, given attractive growth, yield and valuation upside. Underlying estimates are upgraded by 9% for FY23 and 6% for FY24. Target is raised to NZ$1.35 from NZ$1.30.

This report was published on May 19, 2023.

Current Price is $1.06. Target price not assessed.
Current consensus price target is $1.01, suggesting downside of -5.2%(ex-dividends)
The company's fiscal year ends in July.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 5.49 cents and EPS of 7.31 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 14.58.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.7, implying annual growth of N/A.
Current consensus DPS estimate is 6.6, implying a prospective dividend yield of 6.2%.
Current consensus EPS estimate suggests the PER is 12.2.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 6.31 cents and EPS of 9.24 cents.
At the last closing share price the estimated dividend yield is 5.93%.
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 10.3, implying annual growth of 18.4%.
Current consensus DPS estimate is 7.8, implying a prospective dividend yield of 7.3%.
Current consensus EPS estimate suggests the PER is 10.3.

This company reports in NZD. 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

MAH    MACMAHON HOLDINGS LIMITED

Mining Sector Contracting – Overnight Price: $0.13

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

Petra Capital highlights the value inherent in Macmahon's stock price given the discount to mining services peers and a positive track-record over the last five years. Over that time, the company has either met or exceeded each full-year’s earnings guidance.

The analyst expects not only an improved returns profile but also ongoing expansion into underground and civil contracting, which are both areas requiring lower levels of capital intensity.

The target falls to 28c from 29c and the Buy rating is maintained.

This report was published on May 19, 2023.

Target price is $0.28 Current Price is $0.13 Difference: $0.15
If MAH meets the Petra Capital target it will return approximately 115% (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 0.70 cents and EPS of 2.80 cents.
At the last closing share price the estimated dividend yield is 5.38%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.64.

Forecast for FY24:

Petra Capital forecasts a full year FY24 dividend of 1.00 cents and EPS of 3.20 cents.
At the last closing share price the estimated dividend yield is 7.69%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.06.

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

MPL    MEDIBANK PRIVATE LIMITED

Insurance – Overnight Price: $3.51

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

Goldman Sachs reinstates coverage of Medibank Private with a Neutral rating and $3.69 target. The broker believes policyholder growth is well supported amid low rate increases and strong margins.

Health insurers are continuing to benefit from a soft claims environment driven by low utilisation, prosthesis savings as well as the broader move towards lower forms of care, such as out-of-hospital rehab and an increase in day procedures.

The broker prefers nib Holdings ((NHF)) to Medibank Private because of stronger underlying Australian resident growth.

This report was published on May 21, 2023.

Target price is $3.69 Current Price is $3.51 Difference: $0.18
If MPL meets the Goldman Sachs target it will return approximately 5% (excluding dividends, fees and charges).
Current consensus price target is $3.46, suggesting downside of -1.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 15.00 cents and EPS of 18.00 cents.
At the last closing share price the estimated dividend yield is 4.27%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.5, implying annual growth of 22.4%.
Current consensus DPS estimate is 14.1, implying a prospective dividend yield of 4.0%.
Current consensus EPS estimate suggests the PER is 20.1.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 16.00 cents and EPS of 20.00 cents.
At the last closing share price the estimated dividend yield is 4.56%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.55.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.2, implying annual growth of 4.0%.
Current consensus DPS estimate is 15.0, implying a prospective dividend yield of 4.3%.
Current consensus EPS estimate suggests the PER is 19.3.

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: $8.22

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

Goldman Sachs reinstates coverage of nib Holdings with a Buy rating and $8.80 target. The broker believes policyholder growth is well supported amid low rate increases and strong margins.

Health insurers are continuing to benefit from a low claims environment driven by low utilisation, prosthesis savings as well as the broader move towards lower forms of care, such as out-of-hospital rehab and an increase in day procedures.

The broker prefers nib Holdings to Medibank Private ((MPL)) because of stronger underlying Australian resident growth.

This report was published on May 21, 2023.

Target price is $8.80 Current Price is $8.22 Difference: $0.58
If NHF meets the Goldman Sachs target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $7.50, suggesting downside of -8.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 30.00 cents and EPS of 41.00 cents.
At the last closing share price the estimated dividend yield is 3.65%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.05.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 41.1, implying annual growth of 38.9%.
Current consensus DPS estimate is 27.2, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 20.0.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 32.00 cents and EPS of 44.00 cents.
At the last closing share price the estimated dividend yield is 3.89%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.68.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 43.6, implying annual growth of 6.1%.
Current consensus DPS estimate is 28.2, implying a prospective dividend yield of 3.4%.
Current consensus EPS estimate suggests the PER is 18.9.

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

OCL    OBJECTIVE CORPORATION LIMITED

IT & Support – Overnight Price: $12.99

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

Objective Corp did not provide a quantitative trading update at its briefing, although Goldman Sachs is more comfortable with its assumptions that ARR growth can accelerate to 14% in the second half.

This stems from positive commentary around customer adoption of new products and the resilience of public sector demand.

The broker reiterates a Buy rating and raises the target to $14.90 from $14.80.

This report was published on May 20, 2023.

Target price is $14.90 Current Price is $12.99 Difference: $1.91
If OCL meets the Goldman Sachs target it will return approximately 15% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 11.00 cents and EPS of 20.00 cents.
At the last closing share price the estimated dividend yield is 0.85%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 64.95.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 14.00 cents and EPS of 25.00 cents.
At the last closing share price the estimated dividend yield is 1.08%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 51.96.

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

ORA    ORORA LIMITED

Paper & Packaging – Overnight Price: $3.35

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

Following three years of soft earnings growth, Jarden believes analyst expectations for Orora's Australasian business do not adequately reflect either the ability of the company to reach its 15% returns targets or the potential return of Chinese wine volumes over the course of FY24.

Given the nature of the company's planned investments, largely capacity expansion, the broker envisages no impediments to targeted returns and assesses there is a unique risk/reward mixed for shareholders based on the current share price.

The broker retains an Overweight rating. Target is reduced to $3.50 from $3.55.

This report was published on May 18, 2023.

Target price is $3.50 Current Price is $3.35 Difference: $0.15
If ORA meets the Jarden target it will return approximately 4% (excluding dividends, fees and charges).
Current consensus price target is $3.59, suggesting upside of 7.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 17.30 cents and EPS of 23.10 cents.
At the last closing share price the estimated dividend yield is 5.16%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 22.7, implying annual growth of 4.8%.
Current consensus DPS estimate is 17.6, implying a prospective dividend yield of 5.3%.
Current consensus EPS estimate suggests the PER is 14.8.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 18.20 cents and EPS of 22.80 cents.
At the last closing share price the estimated dividend yield is 5.43%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.69.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 23.3, implying annual growth of 2.6%.
Current consensus DPS estimate is 17.8, implying a prospective dividend yield of 5.3%.
Current consensus EPS estimate suggests the PER is 14.4.

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

PMT    PATRIOT BATTERY METALS INC

Mining – Overnight Price: $1.88

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

Patriot Battery Metals has further assays from its winter drilling at Corvette, Quebec. Canaccord Genuity believes the latest results demonstrate the exceptional scale and high grade of the discovery.

The highlight is the extension of the high-grade Nova zone, now interpreted to extend continuously over a distance of 1.1km, a 200m western extension from the last reported results and remaining open to the west.

The company expects a maiden resource for the CV5 pegmatite in July. Speculative Buy retained. Target is $1.87.

This report was published on May 17, 2023.

Target price is $1.87 Current Price is $1.88 Difference: minus $0.01 (current price is over target).
If PMT meets the Canaccord Genuity target it will return approximately minus 1% (excluding dividends, fees and charges – negative figures indicate an expected loss).

This company reports in CAD. 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

SZL    SEZZLE INC

Diversified Financials – Overnight Price: $21.95

Jarden rates ((SZL)) as Neutral (3) –

Jarden reviews forecasts for Sezzle following the quarterly results. Merchant service fees are increased to 6.8% and FY23 revenue estimates increased by 13% with EBITDA up 140%.

The broker previously doubted the company's ability to reach profitable growth, particularly given the competitive landscape in the US, yet Sezzle has started to deliver on its target of positive cash flow.

The broker retains a Neutral rating and continues to watch for profitability being sustained before becoming more positive. Target is raised to $22.90 from $22.80.

This report was published on May 18, 2023.

Target price is $22.90 Current Price is $21.95 Difference: $0.95
If SZL meets the Jarden target it will return approximately 4% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY23:

Jarden forecasts a full year FY23 EPS of minus 1.33 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 1650.38.

Forecast for FY24:

Jarden forecasts a full year FY24 EPS of 26.74 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 82.09.

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

TPW    TEMPLE & WEBSTER GROUP LIMITED

Furniture & Renovation – Overnight Price: $4.99

Canaccord Genuity rates ((TPW)) as Hold (3) –

Temple & Webster has reported a -5% decline in revenue in the second half to date. Of importance, Canaccord Genuity notes the FY23 EBITDA margin guidance of 3-5% has been reconfirmed.

The broker suggests investors are looking for companies which are well capitalised market leaders and can take advantage of an economic cycle to improve their competitive position over the medium term.

Temple & Webster fits this mandate and the broker reiterates a Buy rating with a target of $5.20.

This report was published on May 17, 2023.

Target price is $5.20 Current Price is $4.99 Difference: $0.21
If TPW meets the Canaccord Genuity target it will return approximately 4% (excluding dividends, fees and charges).
Current consensus price target is $4.73, suggesting downside of -5.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of 5.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 99.80.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 5.1, implying annual growth of -48.6%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 97.8.

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 124.75.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 7.4, implying annual growth of 45.1%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 67.4.

Market Sentiment: 0.3
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: $49.91

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

Ahead of the investor briefing, Goldman Sachs reviews the latest industry growth trends and opportunities for Bunnings, Kmart and One Digital.

The broker factors in modestly improved margins for Bunnings and sales for Kmart and raises FY23-25 EBIT estimates by up to 4%.

Sell rating retained. Target is raised to $43.40 from $42.70.

This report was published on May 21, 2023.

Target price is $43.40 Current Price is $49.91 Difference: minus $6.51 (current price is over target).
If WES meets the Goldman Sachs target it will return approximately minus 13% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $49.85, suggesting downside of -0.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 183.00 cents and EPS of 215.00 cents.
At the last closing share price the estimated dividend yield is 3.67%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.21.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 220.6, implying annual growth of 6.2%.
Current consensus DPS estimate is 182.0, implying a prospective dividend yield of 3.6%.
Current consensus EPS estimate suggests the PER is 22.6.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 175.00 cents and EPS of 206.00 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 24.23.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 230.0, implying annual growth of 4.3%.
Current consensus DPS estimate is 191.5, implying a prospective dividend yield of 3.8%.
Current consensus EPS estimate suggests the PER is 21.7.

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

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