Australian Broker Call *Extra* Edition – Jun 23, 2023

This story features ABACUS PROPERTY GROUP, and other companies. For more info SHARE ANALYSIS: ABP

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)

ABP   ARF (2)   AVH   AZJ   BXB   DRE   ILU   KAR   LLL   MAQ   MIN   PBH   RMC   SSM   VVA   WTC  

ABP    ABACUS PROPERTY GROUP

REITs – Overnight Price: $2.65

Moelis rates ((ABP)) as Buy (1) –

Abacus Property is on schedule to de-staple Storage King in August, having raised $225m from institutions. While the de-stapling is designed to unlock latent value Moelis remains concerned about the level of earnings dilution that unit holders of Abacus Property might receive.

Estimates are not changed yet and a Buy rating is maintained. The target is reduced to $3.00 from $3.26 on the basis of the transaction data and Abacus' FY24 distribution guidance.

This report was published on June 19, 2023.

Target price is $3.00 Current Price is $2.65 Difference: $0.35
If ABP meets the Moelis target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $3.20, suggesting upside of 20.8%(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 6.94%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.32.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.7, implying annual growth of -69.4%.
Current consensus DPS estimate is 18.6, implying a prospective dividend yield of 7.0%.
Current consensus EPS estimate suggests the PER is 14.2.

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 6.98%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.10.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.1, implying annual growth of -3.2%.
Current consensus DPS estimate is 17.7, implying a prospective dividend yield of 6.7%.
Current consensus EPS estimate suggests the PER is 14.6.

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

ARF    ARENA REIT

REITs – Overnight Price: $3.77

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

Arena REIT provided an update highlighting the strength of the asset class, the REIT's strong comparable rent growth, contribution from developments and its conservative balance sheet, explains Jarden.

A cap rate expansion of 11bps to 5.16% was offset by strong rental growth since the end of December 2022.

While Jarden expects the REIT's shares will outperform in a uncertain environment, the market is expecting a reversal of interest rate hikes could benefit REITs that are more leveraged than Arena REIT.

The Overweight rating and $4.30 target are unchanged.

This report was published on June 20, 2023.

Target price is $4.30 Current Price is $3.77 Difference: $0.53
If ARF meets the Jarden target it will return approximately 14% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 16.80 cents and EPS of 17.20 cents.
At the last closing share price the estimated dividend yield is 4.46%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.92.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 17.70 cents and EPS of 18.10 cents.
At the last closing share price the estimated dividend yield is 4.69%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.83.

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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Moelis rates ((ARF)) as Hold (3) –

Moelis notes around 17% of Arena REIT's portfolio has been revalued independently. Capitalisation rates have expanded 11 basis points to 5.16% yet this expansion was offset by rental growth with like-for-like rents up 6.8% during FY23.

The broker's view is that the fund has a relatively conservative rent/revenue ratio of 10.7% as a starting point with inflation links and gradual market reviews likely to translate to above-average rental  growth.

Still, the stock trades at a 114% premium to NTA with its implied 4.7% cap rate being the lowest of the ASX 300 A-REITs. The broker retains a Hold rating and $3.71 target.

This report was published on June 19, 2023.

Target price is $3.71 Current Price is $3.77 Difference: minus $0.06 (current price is over target).
If ARF meets the Moelis target it will return approximately minus 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 16.80 cents and EPS of 17.30 cents.
At the last closing share price the estimated dividend yield is 4.46%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.79.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 17.70 cents and EPS of 18.10 cents.
At the last closing share price the estimated dividend yield is 4.69%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.83.

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

AVH    AVITA MEDICAL INC

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $4.65

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

Avita Medical has now received US FDA approval for Recell in the treatment of vitiligo, which Wilsons notes is a condition with only one approved treatment previously and a sizeable unmet need in terms of population.

The broker does not expect the company will pursue commercialisation in this indication until 2025, and probably via a partnership.

Wilsons retains a Market Weight rating and $4.28 target.

This report was published on June 19, 2023.

Target price is $4.28 Current Price is $4.65 Difference: minus $0.37 (current price is over target).
If AVH meets the Wilsons target it will return approximately minus 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $5.78, suggesting upside of 24.2%(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 82.77 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 5.62.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -75.6, 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.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -26.4, 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 N/A.

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

AZJ    AURIZON HOLDINGS LIMITED

Transportation & Logistics – Overnight Price: $3.90

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

Goldman Sachs initiates coverage on Aurizon Holdings with a Neutral rating and $3.95 target. While coal accounts for more than 70% of revenue, as its use faces longer term structural headwinds the company is moving to non-coal rail haulage.

Management intends to decrease above-rail thermal coal revenue to less than 20% by FY30. The broker believes this makes sense, despite the implications for cash flow.

The higher capital intensity required to take advantage of the opportunities in alternative markets such as green metals, silver and containerised freight is considered appropriately priced.

This report was published on June 19, 2023.

Target price is $3.95 Current Price is $3.90 Difference: $0.05
If AZJ meets the Goldman Sachs target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $3.91, suggesting upside of 0.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 16.00 cents and EPS of 21.00 cents.
At the last closing share price the estimated dividend yield is 4.10%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.57.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 21.9, implying annual growth of -21.4%.
Current consensus DPS estimate is 16.1, implying a prospective dividend yield of 4.1%.
Current consensus EPS estimate suggests the PER is 17.8.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 20.00 cents and EPS of 27.00 cents.
At the last closing share price the estimated dividend yield is 5.13%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.44.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 27.3, implying annual growth of 24.7%.
Current consensus DPS estimate is 20.5, implying a prospective dividend yield of 5.3%.
Current consensus EPS estimate suggests the PER is 14.3.

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

BXB    BRAMBLES LIMITED

Transportation & Logistics – Overnight Price: $14.18

Jarden rates ((BXB)) as Neutral (3) –

Lumber pallet costs have fallen faster than wood pallet pricing, indicating to Jarden a sustained positive margin environment for CHEP US Pallets. The decline in wood pallet pricing accelerated marginally through May 2023, down -13% year-on-year.

Since the start of 2023, there has been an ongoing decline in softwood lumber pricing, observe the analysts, averaging a decline of -44%.

The analyst points out transport costs also fell by -15% over May 2023, which may cushion margins from higher pallet return rates as food and beverage retailer inventory levels revert to historical norms.

The Neutral rating and $13.85 target are unchanged.

This report was published on June 20, 2023.

Target price is $13.85 Current Price is $14.18 Difference: minus $0.33 (current price is over target).
If BXB meets the Jarden target it will return approximately minus 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $14.64, suggesting upside of 3.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 EPS of 71.72 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.77.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 75.5, implying annual growth of N/A.
Current consensus DPS estimate is 39.6, implying a prospective dividend yield of 2.8%.
Current consensus EPS estimate suggests the PER is 18.8.

Forecast for FY24:

Jarden forecasts a full year FY24 EPS of 76.91 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.44.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 85.1, implying annual growth of 12.7%.
Current consensus DPS estimate is 45.9, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 16.7.

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

DRE    DREADNOUGHT RESOURCES LIMITED

Mining – Overnight Price: $0.05

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

Dreadnought Resources continues to progress its drill targets at the Tarraji-Yampi project in Western Australia. Augur programs, fixed loop EM geophysics and outcropping samples have identified 14 high-quality targets with similar geochemical signatures to the Orion prospect.

Meanwhile, at the primary asset Mangaroon, Canaccord Genuity expects Yin South will be brought into a resource with further infill drilling de-risking the deposit  in the coming weeks. A maiden carbonatite resource is also a possibility from the third quarter.

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

This report was published on June 20, 2023.

Target price is $0.24 Current Price is $0.05 Difference: $0.187
If DRE meets the Canaccord Genuity target it will return approximately 353% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents.

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

ILU    ILUKA RESOURCES LIMITED

Mineral Sands – Overnight Price: $11.40

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

After increasing its zircon price forecasts Goldman Sachs upgrades EPS estimates for Iluka Resources  by 5% for 2023 and 16% for 2024.

Buy rating retained. Target is raised to $13.70 from $12.90.

This report was published on June 19, 2023.

Target price is $13.70 Current Price is $11.40 Difference: $2.3
If ILU meets the Goldman Sachs target it will return approximately 20% (excluding dividends, fees and charges).
Current consensus price target is $11.32, suggesting downside of -0.7%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 42.00 cents and EPS of 99.00 cents.
At the last closing share price the estimated dividend yield is 3.68%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.52.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 94.9, implying annual growth of -34.1%.
Current consensus DPS estimate is 16.4, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 12.0.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 29.00 cents and EPS of 102.00 cents.
At the last closing share price the estimated dividend yield is 2.54%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.18.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 92.6, implying annual growth of -2.4%.
Current consensus DPS estimate is 14.0, implying a prospective dividend yield of 1.2%.
Current consensus EPS estimate suggests the PER is 12.3.

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

KAR    KAROON ENERGY LIMITED

Crude Oil – Overnight Price: $2.01

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

Following further production issues impacting the ramp-up in Bauna oil output, Karoon Energy lowered FY23 production guidance by -4% to 7.0-7.1mmbbl.

A mark-to-market update for the June quarter Brent oil price reduces the broker's FY23 total revenue and EPS forecasts by -8% and -15%, respectively.

The target falls to $2.45 from $2.50 on the broker's lower production outlook. Overweight.

This report was published on June 20, 2023.

Target price is $2.45 Current Price is $2.01 Difference: $0.44
If KAR meets the Jarden target it will return approximately 22% (excluding dividends, fees and charges).
Current consensus price target is $2.91, suggesting upside of 44.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 0.00 cents and EPS of 23.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.45.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 46.6, 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 4.3.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 17.80 cents and EPS of 46.10 cents.
At the last closing share price the estimated dividend yield is 8.86%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.36.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 73.0, implying annual growth of 56.7%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 2.8.

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

LLL    LEO LITHIUM LIMITED

New Battery Elements – Overnight Price: $1.11

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

Leo Lithium has announced a 50% increase in the Goulamina resource and, as Wilsons observes, this is now the fifth-largest spodumene deposit on the planet.

There is no impact to earnings for the short term while the broker points out that each additional year of life at Goulamina would add 1c to valuation.

Low project expenditure and long life explain a relatively modest incremental valuation impact from extra years of life yet the broker points out it is the intangibles that make large-scale high-quality ore bodies attractive, including options to invest in downstream or scale to support additional infrastructure or processing technology.

Overweight rating maintained. Target is $1.75.

This report was published on June 20, 2023.

Target price is $1.75 Current Price is $1.11 Difference: $0.64
If LLL meets the Wilsons target it will return approximately 58% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of 2.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 44.40.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of 11.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.09.

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

MAQ    MACQUARIE TECHNOLOGY GROUP LIMITED

Telecommunication – Overnight Price: $65.32

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

Further to the equity raising by Macquarie Technology, Goldman Sachs assesses it is a sign of strength in the demand outlook for the cloud as well as stock liquidity.

There is also funding for the expansion at IC3 Super West or other data centre developments, helping to secure the company's growth outlook and reduce peak leverage. Buy rating maintained. Target rises to $77.20 from $75.30.

This report was published on June 19, 2023.

Target price is $77.20 Current Price is $65.32 Difference: $11.88
If MAQ meets the Goldman Sachs target it will return approximately 18% (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 0.00 cents and EPS of 84.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 77.76.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 0.00 cents and EPS of 119.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 54.89.

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

MIN    MINERAL RESOURCES LIMITED

Iron Ore – Overnight Price: $73.11

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

Mineral Resources has updated on its lithium and gas businesses, downgrading lithium guidance again although announcing a further gas discovery in the Perth Basin.

Spodumene sales at Mount Marion have been reduced because of a delayed shipment while volumes at Wodgina are expected to be at the lower end of the prior guidance range.

Goldman Sachs maintains a Sell rating. Target is $59.

This report was published on June 19, 2023.

Target price is $59.00 Current Price is $73.11 Difference: minus $14.11 (current price is over target).
If MIN meets the Goldman Sachs target it will return approximately minus 19% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $86.00, suggesting upside of 17.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 159.00 cents and EPS of 401.00 cents.
At the last closing share price the estimated dividend yield is 2.17%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.23.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 470.9, implying annual growth of 154.7%.
Current consensus DPS estimate is 256.3, implying a prospective dividend yield of 3.5%.
Current consensus EPS estimate suggests the PER is 15.5.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 49.00 cents and EPS of 389.00 cents.
At the last closing share price the estimated dividend yield is 0.67%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.79.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 751.6, implying annual growth of 59.6%.
Current consensus DPS estimate is 317.0, implying a prospective dividend yield of 4.3%.
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

PBH    POINTSBET HOLDINGS LIMITED

Gaming – Overnight Price: $1.65

Jarden rates ((PBH)) as Buy (1) –

Jarden believes firming up the US$195m bid (a non-binding, indicative offer) from Draft Kings for PointsBet Holdings' US operations could potentially extract additional value for shareholders.

As shareholders are set to vote on the US$150m bid by global sports giant Fanatics at the 30 June EGM, the board has given Draft Kings until June 27 to conduct due diligence.

The Fanatics deal limits PointsBet's cash burn to -US$21m, which is relevant beyond any sale price advanced by Draft Kings, point out the analysts.

The Buy rating and $1.79 target are maintained.

This report was published on June 20, 2023.

Target price is $1.79 Current Price is $1.65 Difference: $0.14
If PBH meets the Jarden target it will return approximately 8% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 85.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 1.92.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 64.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 2.57.

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

RMC    RESIMAC GROUP LIMITED

Banks – Overnight Price: $0.92

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

Resimac Group will acquire a $150m loan book for $15m which Wilsons estimates has WALE of 4.5 years and net interest margin of 2.5-3.0%. The assumptions imply a full cash flow yield of $18.6m over 4.5 years.

The majority of the loans were originated in 2022 and were running at more than 30-day arrears of 2.9%. The broker calculates earnings accretion of up to 4.9% in FY24.

The $1.00 target and Market Weight rating are unchanged.

This report was published on June 20, 2023.

Target price is $1.00 Current Price is $0.92 Difference: $0.085
If RMC meets the Wilsons target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $1.12, suggesting upside of 22.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 6.90 cents and EPS of 17.30 cents.
At the last closing share price the estimated dividend yield is 7.54%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.29.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.6, implying annual growth of -29.7%.
Current consensus DPS estimate is 6.9, implying a prospective dividend yield of 7.5%.
Current consensus EPS estimate suggests the PER is 5.2.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 4.90 cents and EPS of 16.20 cents.
At the last closing share price the estimated dividend yield is 5.36%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.65.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 14.6, implying annual growth of -17.0%.
Current consensus DPS estimate is 5.6, implying a prospective dividend yield of 6.1%.
Current consensus EPS estimate suggests the PER is 6.3.

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

SSM    SERVICE STREAM LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $0.79

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

Service Stream has received an unexpected tax refund of $50.2m and Canaccord Genuity estimates this has reduced its forecasts for FY23 net debt to $49m.

The refund comes on the back of recent news that the company has secured a significant program allocation and term extension under its existing agreement with NBN Co.

The broker believes the news underpins increasing conviction in the stock and retains a Buy rating. Target rises to $1.24 from $1.20.

This report was published on June 19, 2023.

Target price is $1.24 Current Price is $0.79 Difference: $0.455
If SSM meets the Canaccord Genuity target it will return approximately 58% (excluding dividends, fees and charges).
Current consensus price target is $0.80, suggesting upside of 1.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 2.50 cents and EPS of 6.00 cents.
At the last closing share price the estimated dividend yield is 3.18%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.08.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 6.2, implying annual growth of N/A.
Current consensus DPS estimate is 1.7, implying a prospective dividend yield of 2.2%.
Current consensus EPS estimate suggests the PER is 12.7.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 4.00 cents and EPS of 7.00 cents.
At the last closing share price the estimated dividend yield is 5.10%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.21.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 7.6, implying annual growth of 22.6%.
Current consensus DPS estimate is 2.7, implying a prospective dividend yield of 3.4%.
Current consensus EPS estimate suggests the PER is 10.3.

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

VVA    VIVA LEISURE LIMITED

Travel, Leisure & Tourism – Overnight Price: $1.29

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

Despite a decline in discretionary retail, Petra Capital finds no indications of such weakness in the leading indicators for Viva Leisure's primary business, Club Lime.

Google trends data suggests search enquiries for Club Lime are defying retail trends and the broker attributes this to its low price point relative to peers, high-quality facilities and data-driven decision making.

Moreover, management is exploring complementary ways to enhance transaction value and optimise utilisation of its floor space. The broker retains a Buy rating and $2.44 target.

This report was published on June 20, 2023.

Target price is $2.44 Current Price is $1.29 Difference: $1.15
If VVA meets the Petra Capital target it will return approximately 89% (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 9.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.18.

Forecast for FY24:

Petra Capital forecasts a full year FY24 dividend of 0.00 cents and EPS of 11.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.93.

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

WTC    WISETECH GLOBAL LIMITED

Cloud services – Overnight Price: $76.90

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

WiseTech Global has acquired Blume Global & Envase which extends its offering within the North American landside market, creating an integrated booking and visibility system.

Goldman Sachs believes this is a significant digital opportunity given it is one of the more complex logistics markets and has structural growth drivers.

Incorporating recent acquisitions and stronger organic growth, the broker revises EBITDA up by as much as 11% and is now forecasting a FY23-26 group revenue/EBITDA growth rate of 27%/30% with US landside contributing around 11% of this growth.

Neutral maintained. Target is $82.

This report was published on June 20, 2023.

Target price is $82.00 Current Price is $76.90 Difference: $5.1
If WTC meets the Goldman Sachs target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $73.54, suggesting downside of -4.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 14.00 cents and EPS of 71.00 cents.
At the last closing share price the estimated dividend yield is 0.18%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 108.31.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 70.6, implying annual growth of 18.3%.
Current consensus DPS estimate is 13.7, implying a prospective dividend yield of 0.2%.
Current consensus EPS estimate suggests the PER is 108.9.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 18.00 cents and EPS of 90.00 cents.
At the last closing share price the estimated dividend yield is 0.23%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 85.44.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 95.1, implying annual growth of 34.7%.
Current consensus DPS estimate is 18.2, implying a prospective dividend yield of 0.2%.
Current consensus EPS estimate suggests the PER is 80.9.

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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