Australian Broker Call *Extra* Edition – May 31, 2023

This story features 29METALS LIMITED, and other companies. For more info SHARE ANALYSIS: 29M

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)

29M   ABC   APM   APX   BSL   CGC   CSL   FPH   GDF   IMM   JHX   NXS   POS   RDY   TWE  

29M    29METALS LIMITED

Copper – Overnight Price: $0.67

Jarden rates ((29M)) as Upgrade to Neutral from Sell (3) –

Jarden upgrades its rating for 29Metals to Neutral from Sell given the share price's recent retreat to -6% below the broker's 68c target price.

The broker retains concerns about the balance sheet but says the current share price does not recognise the value of two proven, well-resourced base metals operations in easy operating jurisidictions, and notes less proven assets are trading at higher values.

Assuming the company can manage short-term balance sheet challenges, the broker expects 2023 could prove the nadir.

This report was published on May 26, 2023.

Target price is $0.68 Current Price is $0.67 Difference: $0.01
If 29M meets the Jarden target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $1.03, suggesting upside of 53.0%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY23:

Jarden forecasts a full year FY23 EPS of minus 33.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 1.98.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -24.8, 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:

Jarden forecasts a full year FY24 EPS of minus 7.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 9.05.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -12.7, implying annual growth of N/A.
Current consensus DPS estimate is 0.5, implying a prospective dividend yield of 0.7%.
Current consensus EPS estimate suggests the PER is N/A.

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

ABC    ADBRI LIMITED

Building Products & Services – Overnight Price: $2.12

Jarden rates ((ABC)) as Neutral (3) –

Adbri's trading update for the year to date has pleased Jarden, management advising profits are sharply above the previous corresponding period.

Infrastructure, commercial and multi-residential segments drove the improvement, while the residential backlog continues to offer support.

Costs remain high but the company says it has been able to pass on much of this. Capital expenditure is also high, and the broker revises up its FY24 estimate to $257m from $121m, and emphasises the importance of asset sales going forward to balance this (it forecasts a total of $145m over FY23 and FY24).

Meanwhile, the CFO search continues. EPS forecasts rise sharply. Neutral rating retained. Target price rises to $1.73 from $1.65.

This report was published on May 25, 2023.

Target price is $1.73 Current Price is $2.12 Difference: minus $0.39 (current price is over target).
If ABC meets the Jarden target it will return approximately minus 18% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $1.80, suggesting downside of -15.1%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 0.00 cents and EPS of 17.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.05.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.7, implying annual growth of -0.1%.
Current consensus DPS estimate is 2.3, implying a prospective dividend yield of 1.1%.
Current consensus EPS estimate suggests the PER is 13.5.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 9.10 cents and EPS of 20.60 cents.
At the last closing share price the estimated dividend yield is 4.29%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.29.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.5, implying annual growth of -1.3%.
Current consensus DPS estimate is 5.5, implying a prospective dividend yield of 2.6%.
Current consensus EPS estimate suggests the PER is 13.7.

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

APM    APM HUMAN SERVICES INTERNATIONAL LIMITED

Healthcare – Overnight Price: $2.00

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

APM Human Services International has been awarded 15% of a functional assessments contract, which Goldman Sachs believes is on account of its strong track record in providing services to the UK government and clinical expertise through its adjacent NDIS/allied health business.

Given the ramp up involved in the program, the broker expects it will contribute to earnings from FY25 onwards. It also demonstrates a strong competitive position as a high-quality provider of government services.

The broker reiterates a Buy rating and reduces the target to $3.75 from $4.10.

This report was published on May 28, 2023.

Target price is $3.75 Current Price is $2.00 Difference: $1.75
If APM meets the Goldman Sachs target it will return approximately 88% (excluding dividends, fees and charges).
Current consensus price target is $3.15, suggesting upside of 57.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 10.00 cents and EPS of 19.00 cents.
At the last closing share price the estimated dividend yield is 5.00%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.53.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.6, implying annual growth of 292.9%.
Current consensus DPS estimate is 10.2, implying a prospective dividend yield of 5.1%.
Current consensus EPS estimate suggests the PER is 11.4.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 11.00 cents and EPS of 23.00 cents.
At the last closing share price the estimated dividend yield is 5.50%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.70.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 21.9, implying annual growth of 24.4%.
Current consensus DPS estimate is 12.3, implying a prospective dividend yield of 6.2%.
Current consensus EPS estimate suggests the PER is 9.1.

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

APX    APPEN LIMITED

IT & Support – Overnight Price: $2.80

Wilsons rates ((APX)) as Upgrade to Market Weight from Underweight (3) –

Wilsons now considers the balance of risks incrementally to the upside and upgrades to Market Weight from Underweight.

At the time of the capital raising the broker did not envisage this would resolve challenges for the top line yet, after Appen's investor briefing, the "breadth of talent" that is addressing the issue is considered impressive.

Appen has been improving outcomes in AI and machine learning for a long time and experienced "growing pains", which the broker believes some of its younger competitors are yet to endure.

Further evidence of "green shoots" is required before becoming more positive and Wilsons upgrades the target to $2.54 from $1.77.

This report was published on May 29, 2023.

Target price is $2.54 Current Price is $2.80 Difference: minus $0.26 (current price is over target).
If APX meets the Wilsons target it will return approximately minus 9% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $1.89, suggesting downside of -32.6%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 32.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 8.72.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -30.9, 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 13.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 20.74.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -11.9, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

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

BSL    BLUESCOPE STEEL LIMITED

Steel & Scrap – Overnight Price: $18.99

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

Goldman Sachs attended the US investor tour, which highlighted the US as a key growth area amid a strategy of maximising volumes at North Star and lowering costs by lifting BlueScope Steel's own scrap supply to at least 40% of feed.

The company expects steel demand to be balanced by 2025 based on 1% annual demand growth along with additions and closures.

Goldman Sachs finds the valuation compelling and a Buy rating is maintained. Target is $23.50.

This report was published on May 25, 2023.

Target price is $23.50 Current Price is $18.99 Difference: $4.51
If BSL meets the Goldman Sachs target it will return approximately 24% (excluding dividends, fees and charges).
Current consensus price target is $21.62, suggesting upside of 13.8%(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 247.00 cents.
At the last closing share price the estimated dividend yield is 2.63%.
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 248.3, implying annual growth of -56.6%.
Current consensus DPS estimate is 50.0, implying a prospective dividend yield of 2.6%.
Current consensus EPS estimate suggests the PER is 7.6.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 50.00 cents and EPS of 270.00 cents.
At the last closing share price the estimated dividend yield is 2.63%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.03.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 194.9, implying annual growth of -21.5%.
Current consensus DPS estimate is 50.0, implying a prospective dividend yield of 2.6%.
Current consensus EPS estimate suggests the PER is 9.7.

Market Sentiment: 0.4
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: $2.62

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

Costa Group's AGM update pleased Jarden, the company advising its international division was experiencing exceptional strength, with improvements being logged in both markets and operations.

Tomatoes and berries proved to be one of the few laggards but the broker observes a more recent uptick. 

Still no news on the CEO appointment, or regarding Paine's arrival onto the share register, but the broker views the latter as a positive and supportive of the share price.

The broker sharply upgrades EPS forecasts, expecting a three-year EPS compound annual growth rate of roughly 16%.

Overweight rating retained. Target price rises to $2.90 from $2.60.

This report was published on May 25, 2023.

Target price is $2.90 Current Price is $2.62 Difference: $0.28
If CGC meets the Jarden target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $2.94, suggesting upside of 12.3%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY23:

Jarden forecasts a full year FY23 EPS of 17.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.06.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 13.3, implying annual growth of 83.7%.
Current consensus DPS estimate is 9.1, implying a prospective dividend yield of 3.5%.
Current consensus EPS estimate suggests the PER is 19.7.

Forecast for FY24:

Jarden forecasts a full year FY24 EPS of 14.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.71.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.7, implying annual growth of 25.6%.
Current consensus DPS estimate is 10.4, implying a prospective dividend yield of 4.0%.
Current consensus EPS estimate suggests the PER is 15.7.

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

CSL    CSL LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $308.24

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

Jarden upgrades its target price for CSL to $347.18 from $334.55, expecting a strong performance from the company's Seqirus flu vaccine, after discussions with a large US influenza vaccine distributor.

The distributor observes Seqirus, which represents 16% of group gross profit, appears to be gaining market share at the expense of GSK and Sanofi, thanks to its exclusive eligibility for a preferential reimbursement code.

EPS forecasts rise 2.4% in FY24 accordingly, to reflect a 9.6% upgrade to Seqirus' gross profit forecast.

Overweight rating retained.

This report was published on May 25, 2023.

Target price is $347.18 Current Price is $308.24 Difference: $38.94
If CSL meets the Jarden target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $335.99, suggesting upside of 9.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 322.68 cents and EPS of 717.88 cents.
At the last closing share price the estimated dividend yield is 1.05%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 42.94.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 852.7, implying annual growth of N/A.
Current consensus DPS estimate is 388.9, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 36.1.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 340.44 cents and EPS of 1034.34 cents.
At the last closing share price the estimated dividend yield is 1.10%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.80.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1088.5, implying annual growth of 27.7%.
Current consensus DPS estimate is 488.6, implying a prospective dividend yield of 1.6%.
Current consensus EPS estimate suggests the PER is 28.3.

This company reports in USD. 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

FPH    FISHER & PAYKEL HEALTHCARE CORPORATION LIMITED

Medical Equipment & Devices – Overnight Price: $22.50

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

FY23 revenue was in line with forecasts, while Wilsons highlights the "good news" that Fisher & Paykel Healthcare is again providing guidance, with a FY24 revenue outlook that is in line with the market.

Net profit estimates are reduced by around -10-14% amid expenditure hikes and elevated interest expense related to a material capex expansion. Wilsons is not convinced by the business case for capacity expansion.

Market Weight maintained. Target is $23.39.

This report was published on May 29, 2023.

Target price is $23.39 Current Price is $22.50 Difference: $0.89
If FPH meets the Wilsons target it will return approximately 4% (excluding dividends, fees and charges).
Current consensus price target is $21.47, suggesting downside of -4.6%(ex-dividends)
The company's fiscal year ends in March.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 37.51 cents and EPS of 41.81 cents.
At the last closing share price the estimated dividend yield is 1.67%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 53.81.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 42.0, implying annual growth of N/A.
Current consensus DPS estimate is 32.9, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 53.6.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 39.34 cents and EPS of 50.32 cents.
At the last closing share price the estimated dividend yield is 1.75%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 44.71.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 53.6, implying annual growth of 27.6%.
Current consensus DPS estimate is 34.8, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 42.0.

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

GDF    GARDA PROPERTY GROUP

REITs – Overnight Price: $1.28

Moelis rates ((GDF)) as Buy (1) –

Garda Property has updated valuations, noting industrial, despite 68 basis points of expansion, has increased by around $31bn, driven by an increase in market rent assumptions and the valuation of North Lakes. The uplift from North Lakes far exceeded Moelis estimates.

Works are expected to commence at that site in August now that all operating permits have been submitted. At Pinkemba the capitalisation rate is unchanged at 4.5%, with limited improvements to the land effectively implying the valuation is relatively close to land value.

Moelis increases the target to $1.80 from $1.77 amid a more positive outcome on portfolio valuations than previously expected. Buy rating maintained.

This report was published on May 25, 2023.

Target price is $1.80 Current Price is $1.28 Difference: $0.52
If GDF meets the Moelis target it will return approximately 41% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 7.20 cents and EPS of 7.10 cents.
At the last closing share price the estimated dividend yield is 5.63%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.03.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 7.20 cents and EPS of 7.20 cents.
At the last closing share price the estimated dividend yield is 5.63%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.78.

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

IMM    IMMUTEP LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $0.30

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

Immutep has delivered further data showing Efti, when added to Merck's Keytruda, is doubling the number of patients that can benefit from the treatment, although the median overall survivor rate came down.

Petra Capital notes the final second-line head and neck data in the abstract for the overall treatment group have been largely consistent with interim data reported in 2021, yet the more relevant PD-L1 positive group data will not be released till June 5.

The negative market reaction is considered excessive and premature. Buy rating reiterated with a $1.28 target.

This report was published on May 29, 2023.

Target price is $1.28 Current Price is $0.30 Difference: $0.98
If IMM meets the Petra Capital target it will return approximately 327% (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 minus 5.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 5.88.

Forecast for FY24:

Petra Capital forecasts a full year FY24 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 6.00.

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

JHX    JAMES HARDIE INDUSTRIES PLC

Building Products & Services – Overnight Price: $38.14

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

Further to the FY23 results, Goldman Sachs notes the implied margin upside from James Hardie Industries' margin sensitivities to any subsequent recovery in FY24 appears absent from consensus estimates.

Using consensus volumes, the broker calculates margin estimates are -230 basis points lower than implied for FY25 and -420 basis points lower than FY26.

Hence, notwithstanding a more cautious volume profile, Goldman Sachs has margin forecasts that are 115 basis points above consensus for FY25 and 205 basis points above in FY26.

Buy rating maintained. Target is $43.30.

This report was published on May 25, 2023.

Target price is $43.30 Current Price is $38.14 Difference: $5.16
If JHX meets the Goldman Sachs target it will return approximately 14% (excluding dividends, fees and charges).
Current consensus price target is $42.83, suggesting upside of 12.3%(ex-dividends)
The company's fiscal year ends in March.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 0.00 cents and EPS of 179.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.30.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 191.4, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 19.9.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 0.00 cents and EPS of 210.18 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.15.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 219.4, implying annual growth of 14.6%.
Current consensus DPS estimate is 21.8, implying a prospective dividend yield of 0.6%.
Current consensus EPS estimate suggests the PER is 17.4.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.9
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

NXS    NEXT SCIENCE LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $0.56

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

At its AGM, Next Science has outlined the positive aspects of its durable medical equipment strategy. There has been a step change in the success of its BlastX wound care program, Canaccord Genuity suggests, and Xperience,  the surgical wash product, continues to build momentum.

Canaccord Genuity is more confident that ongoing solid clinical and commercial execution could drive a positive re-rating. Buy rating maintained with a target of $0.85.

This report was published on May 29, 2023.

Target price is $0.85 Current Price is $0.56 Difference: $0.285
If NXS meets the Canaccord Genuity target it will return approximately 50% (excluding dividends, fees and charges).

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

POS    POSEIDON NICKEL LIMITED

Nickel – Overnight Price: $0.05

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

Petra Capital flags Black Swan as the first nickel asset to be  developed among Poseidon Nickel's suite of increasingly strategic nickel assets in Western Australia.

Quality WA-based nickel assets are in short supply and final offtake and debt financing negotiations are well advanced, the broker suggests.

The company anticipates an FID on the re-start of Black Swan in late June or early July. Buy rating and 8c target maintained.

This report was published on May 29, 2023.

Target price is $0.08 Current Price is $0.05 Difference: $0.034
If POS meets the Petra Capital target it will return approximately 74% (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 minus 0.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 46.00.

Forecast for FY24:

Petra Capital forecasts a full year FY24 dividend of 0.00 cents and EPS of 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.60.

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

RDY    READYTECH HOLDINGS LIMITED

Software & Services – Overnight Price: $2.98

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

Petra Capital reiterates a Buy rating and $4.10 target, noting the interim result from TechnologyOne ((TNE)) highlights the ability of SaaS businesses to provide strong earnings growth in an uncertain economy.

Given ReadyTech has pushed into the enterprise segment where the latter has operated successfully, the broker also believes it will perform strongly in a high interest-rate and inflationary environment.

As the company develops a track record as a listed company and builds scale, Petra Capital believes the multiple discount to TechnologyOne should narrow over time.

This report was published on May 26, 2023.

Target price is $4.10 Current Price is $2.98 Difference: $1.12
If RDY meets the Petra Capital target it will return approximately 38% (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 13.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.58.

Forecast for FY24:

Petra Capital forecasts a full year FY24 dividend of 9.00 cents and EPS of 18.20 cents.
At the last closing share price the estimated dividend yield is 3.02%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.37.

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

TWE    TREASURY WINE ESTATES LIMITED

Food, Beverages & Tobacco – Overnight Price: $11.83

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

Treasury Wine Estates updated on its premium brands and FY23 outlook. Group returns are expected to decline -2-3%.

Declines in Treasury Americas and premium brands are partially offset by strong growth in Penfolds, which all up implies a -4% miss compared with Goldman Sachs estimates.

The company alludes to group EBITS between $580-590m, again a -1% miss against the broker's prior estimates. Hence, FY23-25 sales are cut by -3% and EPS by -2%.

At the full year results the broker looks forward to management discussing the strength of Penfolds in the second half, and how much of that is flowing to Hong Kong, as well as the tactical solutions being put in place to rejuvenate 19 Crimes volumes.

The broker believes the current sell down is an opportunity and reiterates a Buy rating. Target is reduced to $14.20 from $14.50.

This report was published on May 25, 2023.

Target price is $14.20 Current Price is $11.83 Difference: $2.37
If TWE meets the Goldman Sachs target it will return approximately 20% (excluding dividends, fees and charges).
Current consensus price target is $13.23, suggesting upside of 11.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 36.00 cents and EPS of 50.00 cents.
At the last closing share price the estimated dividend yield is 3.04%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.66.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 48.3, implying annual growth of 32.5%.
Current consensus DPS estimate is 33.5, implying a prospective dividend yield of 2.8%.
Current consensus EPS estimate suggests the PER is 24.5.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 39.00 cents and EPS of 55.00 cents.
At the last closing share price the estimated dividend yield is 3.30%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.51.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 55.6, implying annual growth of 15.1%.
Current consensus DPS estimate is 38.0, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 21.3.

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

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