Australian Broker Call *Extra* Edition – May 25, 2023

This story features PENTANET LIMITED, and other companies. For more info SHARE ANALYSIS: 5GG

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)

5GG   A2B   ABP   ASB   BXB   CCX (2)   CGC   DSK   EBR   ELD   EOS   GT1   HT1   NUF   OFX   PEN   QBE   QIP   RED   XRO (2)  

5GG    PENTANET LIMITED

Telecommunication – Overnight Price: $0.08

Petra Capital rates ((5GG)) as Buy (1) –

Petra Capital revises earnings estimates subsequent to Pentanet's capital raising, and materially reduces valuation. The broker expects the third quarter will be a low point and circumstances will improve in FY24 as capacity constraints are alleviated.

NBNCo is undertaking major capacity upgrades nationwide to offer Home Ultrafast and the broker suspects Pentanet's on-net value proposition is under pressure, as the hoped-for subscriber land grab has not yet materialised.

Buy rating retained with the target lowered to $0.20 from $0.61.

This report was published on May 19, 2023.

Target price is $0.20 Current Price is $0.08 Difference: $0.123
If 5GG meets the Petra Capital target it will return approximately 160% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Petra Capital forecasts a full year FY23 EPS of minus 3.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 2.41.

Forecast for FY24:

Petra Capital forecasts a full year FY24 EPS of minus 2.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 3.50.

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

A2B    A2B AUSTRALIA LIMITED

Transportation & Logistics – Overnight Price: $1.41

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

Petra Capital has upgraded earnings forecasts for A2B Australia in FY24 and FY25 based on strengthening leading indicators that were highlighted by management at the interim result as well as higher margin expectations.

Passenger numbers from that overseas migration and domestic airport activity are increasing significantly. The broker reiterates a Buy rating and lifts the target to $2.10 from $1.19.

This report was published on May 19, 2023.

Target price is $2.10 Current Price is $1.41 Difference: $0.695
If A2B meets the Petra Capital target it will return approximately 49% (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 23.81.

Forecast for FY24:

Petra Capital forecasts a full year FY24 dividend of 63.50 cents and EPS of 7.10 cents.
At the last closing share price the estimated dividend yield is 45.20%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.79.

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

ABP    ABACUS PROPERTY GROUP

REITs – Overnight Price: $2.58

Moelis rates ((ABP)) as Buy (1) –

Abacus Property has updated on the proposed de-stapling of Storage King from the A-REIT. As part of the de-stapling, the company proposes a $300-350m capital raising for Abacus Storage King REIT (ASK).

This will result in both entities having gearing in the range of 25-30%. If approved, the A-REIT will be externally managed by Abacus Property.

While this makes strategic sense to Moelis, further detail is required to accurately assess whether the proposed structure will unlock some of the latent value within the storage portfolio. Buy rating retained. Target is reduced to $3.26 from $3.31.

This report was published on May 21, 2023.

Target price is $3.26 Current Price is $2.58 Difference: $0.68
If ABP meets the Moelis target it will return approximately 26% (excluding dividends, fees and charges).
Current consensus price target is $3.19, suggesting upside of 23.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 18.40 cents and EPS of 18.50 cents.
At the last closing share price the estimated dividend yield is 7.13%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.95.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 19.0, implying annual growth of -68.9%.
Current consensus DPS estimate is 18.7, implying a prospective dividend yield of 7.2%.
Current consensus EPS estimate suggests the PER is 13.6.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 18.50 cents and EPS of 18.80 cents.
At the last closing share price the estimated dividend yield is 7.17%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.72.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.5, implying annual growth of -2.6%.
Current consensus DPS estimate is 17.7, implying a prospective dividend yield of 6.9%.
Current consensus EPS estimate suggests the PER is 13.9.

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

ASB    AUSTAL LIMITED

Commercial Services & Supplies – Overnight Price: $1.89

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

Austal has successfully tendered for the US Navy's US$3.2bn T-AGOS program which represents a significant increase in US capacity utilisation.

Petra Capital also asserts this infers a high degree of confidence in the company's governance and ability to deliver a strategically important naval asset.

Amid a strong order book and competitive position, the broker expects the company will be aa key beneficiary of the increase in defence budgets. Buy rating reiterated. Target is $2.76.

This report was published on May 22, 2023.

Target price is $2.76 Current Price is $1.89 Difference: $0.87
If ASB meets the Petra Capital target it will return approximately 46% (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 5.00 cents and EPS of 10.50 cents.
At the last closing share price the estimated dividend yield is 2.65%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.00.

Forecast for FY24:

Petra Capital forecasts a full year FY24 dividend of 10.50 cents and EPS of 21.20 cents.
At the last closing share price the estimated dividend yield is 5.56%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.92.

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: $14.37

Jarden rates ((BXB)) as Neutral (3) –

In tracking data for April, Jarden observes the margin tailwind from strong pallet pricing and falling transport costs is continuing into the fourth quarter, which suggests the US transport cost environment is increasingly favourable for Brambles.

That said, the benefits are more likely to be evident into FY24 as 80% of the contracted volumes have been agreed at fixed rates rather than spot prices.

The Neutral rating and $13.15 target are maintained.

This report was published on May 19, 2023.

Target price is $13.15 Current Price is $14.37 Difference: minus $1.22 (current price is over target).
If BXB meets the Jarden target it will return approximately minus 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $14.64, suggesting upside of 1.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 EPS of 71.38 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.13.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 78.0, implying annual growth of N/A.
Current consensus DPS estimate is 40.9, implying a prospective dividend yield of 2.8%.
Current consensus EPS estimate suggests the PER is 18.4.

Forecast for FY24:

Jarden forecasts a full year FY24 EPS of 76.55 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.77.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 87.8, implying annual growth of 12.6%.
Current consensus DPS estimate is 47.4, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 16.4.

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

CCX    CITY CHIC COLLECTIVE LIMITED

Apparel & Footwear – Overnight Price: $0.41

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

City Chic Collective has updated on a particularly weak second half, aggravated by the unwinding of inventory and disruption from the transition to a new 3PL. Petra Capital cuts forecasts as a result.

As clearance activity is in its final few months, the transition to net cash is on track and fulfilment costs are starting to flow the broker retains a Buy rating. Target is $0.60, reduced from $0.90.

This report was published on May 23, 2023.

Target price is $0.60 Current Price is $0.41 Difference: $0.19
If CCX meets the Petra Capital target it will return approximately 46% (excluding dividends, fees and charges).
Current consensus price target is $0.53, suggesting upside of 28.9%(ex-dividends)
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 minus 10.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 4.10.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -7.5, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY24:

Petra Capital forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 1.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 22.78.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 0.7, implying annual growth of N/A.
Current consensus DPS estimate is 0.8, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 58.6.

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

City Chic Collective's trading update disappointed Wilsons. Going forward, because of volatile promotional activity, the gross margin visibility is difficult and the broker notes goodwill impairment risk remains.

The company is still aggressively discounting across regions particularly in EMEA.

 Wilsons believes private equity would pay between $0.45 and $0.55 under a leveraged buyout then restructure scenario. This is attractive, in the broker's view, given offshore operations can be easily divested or closed. Target is reduced to $0.36 from $0.50. Market Weight.

This report was published on May 23, 2023.

Target price is $0.36 Current Price is $0.41 Difference: minus $0.05 (current price is over target).
If CCX meets the Wilsons target it will return approximately minus 12% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $0.53, suggesting upside of 28.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 13.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 3.11.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -7.5, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 10.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 3.87.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 0.7, implying annual growth of N/A.
Current consensus DPS estimate is 0.8, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 58.6.

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

CGC    COSTA GROUP HOLDINGS LIMITED

Agriculture – Overnight Price: $2.38

Goldman Sachs – Cessation of coverage

This report was published on May 24, 2023.

Forecast for FY23:

Current consensus EPS estimate is 13.8, implying annual growth of 90.6%.
Current consensus DPS estimate is 9.4, implying a prospective dividend yield of 3.9%.
Current consensus EPS estimate suggests the PER is 17.2.

Forecast for FY24:

Current consensus EPS estimate is 17.0, implying annual growth of 23.2%.
Current consensus DPS estimate is 10.6, implying a prospective dividend yield of 4.5%.
Current consensus EPS estimate suggests the PER is 14.0.

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

DSK    DUSK GROUP LIMITED

Household & Personal Products – Overnight Price: $1.05

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

While Dusk Group posted a lukewarm update it was in line with Canaccord Genuity's expectations. The company has alluded to a softer-than-expected Mother's Day which reflects a more cautious consumer.

Still, the update follows a "pleasing" first half result, the broker asserts, and suggests the business is working its way through very tough pandemic-related comparables.

FY24 forecasts appear to be an improvement on FY23, partly owing to the benefit of store growth. Buy rating retained. Target is steady at $2.20.

This report was published on May 19, 2023.

Target price is $2.20 Current Price is $1.05 Difference: $1.145
If DSK meets the Canaccord Genuity target it will return approximately 109% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 18.00 cents and EPS of 21.00 cents.
At the last closing share price the estimated dividend yield is 17.06%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.02.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 19.00 cents and EPS of 24.10 cents.
At the last closing share price the estimated dividend yield is 18.01%.
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

EBR    EBR SYSTEMS INC

Medical Equipment & Devices – Overnight Price: $1.04

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

Investigators associated with EBR Systems' Solve study have presented data at the annual meeting of the Heart Rhythm Society in New Orleans. Safety and efficacy outcomes exceeded pre-specified criteria with statistical significance.

The company will now move ahead with preparations for a pre-market authorisation application next year.

Wilsons anticipated a positive interim result and therefore does not update its modelling. Setting all success probabilities to 100% provides an un-risked, fully diluted price target of $2.35.

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

This report was published on May 23, 2023.

Target price is $1.50 Current Price is $1.04 Difference: $0.455
If EBR meets the Wilsons target it will return approximately 44% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY23:

Wilsons forecasts a full year FY23 EPS of minus 19.51 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 5.36.

Forecast for FY24:

Wilsons forecasts a full year FY24 EPS of minus 20.98 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 4.98.

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

ELD    ELDERS LIMITED

Agriculture – Overnight Price: $6.51

Goldman Sachs – Cessation of coverage

This report was published on May 24, 2023.

Forecast for FY23:

Current consensus EPS estimate is 72.6, implying annual growth of -30.2%.
Current consensus DPS estimate is 47.1, implying a prospective dividend yield of 7.2%.
Current consensus EPS estimate suggests the PER is 9.0.

Forecast for FY24:

Current consensus EPS estimate is 68.2, implying annual growth of -6.1%.
Current consensus DPS estimate is 43.1, implying a prospective dividend yield of 6.6%.
Current consensus EPS estimate suggests the PER is 9.5.

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

EOS    ELECTRO OPTIC SYSTEMS HOLDINGS LIMITED

Hardware & Equipment – Overnight Price: $0.90

Petra Capital rates ((EOS)) as Hold (3) –

Recent contract wins have put the focus on repairing the balance sheet and Petra Capital suggests is a reminder of the growth potential in some of Electro Optic Systems' operating segments.

Key contracts include two conditional ones to supply RWS to Ukraine, worth a combined US$121m with delivery scheduled for 2023-24. The other notable win pertains to EM Solutions which is expected to contribute $3-4m  in EBIT per annum out to 2030.

The broker reiterates a Hold rating, pending further progress on cash collections. Target is $0.85.

This report was published on May 23, 2023.

Target price is $0.85 Current Price is $0.90 Difference: minus $0.05 (current price is over target).
If EOS meets the Petra Capital target it will return approximately minus 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in December.

Forecast for FY23:

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

Forecast for FY24:

Petra Capital forecasts a full year FY24 dividend of 0.00 cents and EPS of 2.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 34.62.

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

GT1    GREEN TECHNOLOGY METALS LIMITED

New Battery Elements – Overnight Price: $0.75

Canaccord Genuity rates ((GT1)) as Speculative Buy (1) –

Green Technology Metals has a strategic investment and offtake agreement with LG Energy Solution. The latter has subscribed for $20m in equity at $0.92 a share, giving it a 7.89% stake.

The offtake will cover 25% of the company's spodumene concentrate production from Seymour over the next five years. Canaccord Genuity updates its modelling and raises the target to $1.90 from $1.85. Speculative Buy rating retained.

This report was published on May 19, 2023.

Target price is $1.90 Current Price is $0.75 Difference: $1.15
If GT1 meets the Canaccord Genuity target it will return approximately 153% (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 minus 7.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 10.71.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 8.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 9.38.

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

Wilsons rates ((HT1)) as Overweight (1) –

The trading update from HT&E was consistent with Wilsons' expectations although the improved cost guidance was a positive surprise. Moreover, the return of government expenditure and support from travel and automotive verticals may also provide upside.

The broker updates its modelling for the improved cost guidance and reduces interest forecasts. Overweight maintained. Target is raised to $1.67 from $1.52.

This report was published on May 22, 2023.

Target price is $1.67 Current Price is $1.05 Difference: $0.62
If HT1 meets the Wilsons target it will return approximately 59% (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:

Wilsons forecasts a full year FY23 dividend of 10.40 cents and EPS of 12.70 cents.
At the last closing share price the estimated dividend yield is 9.90%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.27.

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:

Wilsons forecasts a full year FY24 dividend of 11.00 cents and EPS of 15.10 cents.
At the last closing share price the estimated dividend yield is 10.48%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.95.

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

NUF    NUFARM LIMITED

Agriculture – Overnight Price: $5.48

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

Nufarm's first half earnings significantly exceeded Wilsons' expectations underpinned by gross margin expansion with more favourable mix as well as new product launches. Yet cash flow was materially weaker than expected.

The broker is aware of the potential for price deflation and associated impacts on earnings in the near term but is still encouraged by the gross margin benefit from the new products.

The Market Weight rating is retained and the target rises to $6.04 from $5.63.

This report was published on May 19, 2023.

Target price is $6.04 Current Price is $5.48 Difference: $0.56
If NUF meets the Wilsons target it will return approximately 10% (excluding dividends, fees and charges).
Current consensus price target is $7.12, suggesting upside of 29.9%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 12.00 cents and EPS of 30.80 cents.
At the last closing share price the estimated dividend yield is 2.19%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.79.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 41.7, implying annual growth of 58.5%.
Current consensus DPS estimate is 11.2, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 13.1.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 16.00 cents and EPS of 32.80 cents.
At the last closing share price the estimated dividend yield is 2.92%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.71.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 44.5, implying annual growth of 6.7%.
Current consensus DPS estimate is 12.6, implying a prospective dividend yield of 2.3%.
Current consensus EPS estimate suggests the PER is 12.3.

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

OFX    OFX GROUP LIMITED

Diversified Financials – Overnight Price: $1.77

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

OFX Group will report it is FY23 result on May 23 and Canaccord Genuity expects fee and trading income of $225m. EBITDA is expected to be $62m, at the lower end of the prior guidance range and indicating a margin of 28%.

The broker believes multiple de-ratings fail to account for the strategic value of global infrastructure embedded in the corporate segment and the latent value of the consumer segment when this cycle inevitably turns. Buy rating and $2.60 target maintained.

This report was published on May 19, 2023.

Target price is $2.60 Current Price is $1.77 Difference: $0.83
If OFX meets the Canaccord Genuity target it will return approximately 47% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of 14.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.64.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of 12.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.75.

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

PEN    PENINSULA ENERGY LIMITED

Uranium – Overnight Price: $0.16

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

After a site visit to Lance, Canaccord Genuity notes, while overall expenditure is tracking with Peninsula Energy's projections, like any transformation, ramp up will take time and production is unlikely to hit nameplate until the new mine units are in production.

With the likelihood of US sanctions on Russia increasing and a desire to stimulate domestic uranium production, the broker considers the stock highly attractive play.

The Speculative Buy rating and target price of $0.36 are retained. 

This report was published on May 22, 2023.

Target price is $0.36 Current Price is $0.16 Difference: $0.2
If PEN meets the Canaccord Genuity target it will return approximately 125% (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 minus 0.15 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 108.11.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of 0.89 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.06.

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

QBE    QBE INSURANCE GROUP LIMITED

Insurance – Overnight Price: $14.74

Jarden rates ((QBE)) as Buy (1) –

Jarden's analysis suggests QBE Insurance's liability reserves in North America have moved further ahead of peers over FY22, and the risk of further US reserve top-ups appears low.

Amid a reacceleration in pricing and mix as a benefit from exiting unprofitable catastrophe-program business, the broker envisages scope for the North American COR to hit 95% by FY24. Buy rating retained. Target rises to $19.65 from $19.25.

This report was published on May 22, 2023.

Target price is $19.65 Current Price is $14.74 Difference: $4.91
If QBE meets the Jarden target it will return approximately 33% (excluding dividends, fees and charges).
Current consensus price target is $16.13, suggesting upside of 9.5%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 104.92 cents and EPS of 145.12 cents.
At the last closing share price the estimated dividend yield is 7.12%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.16.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 139.4, implying annual growth of N/A.
Current consensus DPS estimate is 110.5, implying a prospective dividend yield of 7.5%.
Current consensus EPS estimate suggests the PER is 10.6.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 125.61 cents and EPS of 174.97 cents.
At the last closing share price the estimated dividend yield is 8.52%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.42.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 168.3, implying annual growth of 20.7%.
Current consensus DPS estimate is 120.0, implying a prospective dividend yield of 8.1%.
Current consensus EPS estimate suggests the PER is 8.8.

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

QIP    QANTM INTELLECTUAL PROPERTY LIMITED

Legal – Overnight Price: $0.85

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

Qantm Intellectual Property has outlined its strategic direction and provided reasons for increasing market share. Petra Capital is comfortable with the market position and awaits further commentary on the IT transformation project.

Patent applications for the nine months to March were up 4.6% and market share increased to 16.2%. The broker does not believe the stock price reflects intrinsic value, particularly given the defensive qualities and level of free cash flow.

Buy rating maintained. Target is $1.56.

This report was published on May 19, 2023.

Target price is $1.56 Current Price is $0.85 Difference: $0.71
If QIP meets the Petra Capital target it will return approximately 84% (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 6.10 cents and EPS of 10.40 cents.
At the last closing share price the estimated dividend yield is 7.18%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.17.

Forecast for FY24:

Petra Capital forecasts a full year FY24 dividend of 7.10 cents and EPS of 10.90 cents.
At the last closing share price the estimated dividend yield is 8.35%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.80.

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

RED    RED 5 LIMITED

Gold & Silver – Overnight Price: $0.15

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

A general update on the ASX-listed gold sector, through Canaccord Genuity's recent mining conference, shows the broker's rating for Red 5 is now Speculative Buy, with a price target of 28c.

This report was published on May 19, 2023.

Target price is $0.28 Current Price is $0.15 Difference: $0.13
If RED meets the Canaccord Genuity target it will return approximately 87% (excluding dividends, fees and charges).

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

XRO    XERO LIMITED

Accountancy – Overnight Price: $108.75

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

The FY23 results have allayed Jarden's fears of softer subscriber numbers. Moreover, average revenue per unit improved.

The broker considers Xero high-quality with a long runway for growth and a large total addressable market of which the company only captures 8% presently. The broker assumes a free cash flow yield 10% in FY24 but does not expect the company will reach the "rule of 40" until FY30.

The Overweight rating is reiterated while the target is increased to $106 from $92.

This report was published on May 19, 2023.

Target price is $106.00 Current Price is $108.75 Difference: minus $2.75 (current price is over target).
If XRO meets the Jarden target it will return approximately minus 3% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $103.57, suggesting downside of -4.8%(ex-dividends)
The company's fiscal year ends in March.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 0.00 cents and EPS of 73.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 147.16.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 86.7, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 125.4.

Forecast for FY25:

Jarden forecasts a full year FY25 EPS of 107.01 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 101.63.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 143.5, implying annual growth of 65.5%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 75.8.

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

Xero produced solid volume growth in FY23 as well as stronger prices, Wilsons notes. The broker highlights the operating leverage, with a material adjustment in the cost base as around 15% of staff leave. Hence, the business will enter FY24 leaner and more efficient.

Wilsons continues to apply an EV/sales multiple to FY24 forecasts, which increases to 12x, and means the target rises to $126.32 from $98.89. The increase is considered justifiable, given market-leading churn through a volatile economic period.  Overweight.

This report was published on May 22, 2023.

Target price is $126.32 Current Price is $108.75 Difference: $17.57
If XRO meets the Wilsons target it will return approximately 16% (excluding dividends, fees and charges).
Current consensus price target is $103.57, suggesting downside of -4.8%(ex-dividends)
The company's fiscal year ends in March.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of 108.84 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 99.92.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 86.7, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 125.4.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 0.00 cents and EPS of 191.06 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 56.92.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 143.5, implying annual growth of 65.5%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 75.8.

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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