Australian Broker Call *Extra* Edition – Jun 28, 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   ANP   AOF   APZ   ARF   BPT   BSL   BWP   COH   DLI   HLO   LRS   PPE   SGLLV   SMR   STX   XRO  

ABP    ABACUS PROPERTY GROUP

REITs – Overnight Price: $2.65

Moelis rates ((ABP)) as Buy (1) –

Bond markets now imply an RBA cash rate of 4.6% by December, up from 4.1%, observes Moelis, before gradually declining to 4.2% by November 2024.

Given the rising interest rate environment, the broker weighs the impact upon small-and mid-cap real estate exposures under its research coverage. On average, FY24 and FY25 earnings per unit (EPU) fall by -2.0% and -2.4%, respectively.

In general terms, the analysts note the REITs most impacted by higher interest rates have some of the following characteristics: higher gearing, less hedging, lower cap rates and fixed rental increases. Landlords lacking bargaining power with tenants may also suffer from not passing on inflation.

For Abacus Property, Moelis lowers its target to $2.93 from $3.00. Buy.

This report was published on June 26, 2023.

Target price is $2.93 Current Price is $2.65 Difference: $0.28
If ABP meets the Moelis target it will return approximately 11% (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 18.30 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 14.48.

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

ANP    ANTISENSE THERAPEUTICS LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $0.06

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

Sarepta Therapeutics has US FDA approval of its gene therapy, Elevidys, for Duchenne Muscular Dystrophy. This represents the first gene therapy approved for this indication.

Wilsons views any use of Elevidys, or other future approved gene therapies, as highly complementary to what the Antisense Therapeutics ATL1102 is seeking to achieve in DMD.

Overweight rating retained. Target is 36c.

This report was published on June 23, 2023.

Target price is $0.36 Current Price is $0.06 Difference: $0.296
If ANP meets the Wilsons target it will return approximately 463% (excluding dividends, fees and charges).

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

AOF    AUSTRALIAN UNITY OFFICE FUND

REITs – Overnight Price: $1.56

Moelis rates ((AOF)) as Downgrade to Hold from Buy (3) –

Bond markets now imply an RBA cash rate of 4.6% by December, up from 4.1%, observes Moelis, before gradually declining to 4.2% by November 2024.

Given the rising interest rate environment, the broker weighs the impact upon small-and mid-cap real estate exposures under its research coverage. On average, FY24 and FY25 earnings per unit (EPU) fall by -2.0% and -2.4%, respectively.

In general terms, the analysts note the REITs most impacted by higher interest rates have some of the following characteristics: higher gearing, less hedging, lower cap rates and fixed rental increases. Landlords lacking bargaining power with tenants may also suffer from not passing on inflation.

For Australian Unity Office Fund, Moelis lowers its target to $1.59 from $1.62, while the rating is downgraded to hold from Buy.

This report was published on June 26, 2023.

Target price is $1.59 Current Price is $1.56 Difference: $0.025
If AOF meets the Moelis target it will return approximately 2% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 30.00 cents and EPS of 11.00 cents.
At the last closing share price the estimated dividend yield is 19.17%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.23.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 7.80 cents and EPS of 9.60 cents.
At the last closing share price the estimated dividend yield is 4.98%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.30.

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

APZ    ASPEN GROUP LIMITED

Real Estate – Overnight Price: $1.78

Moelis rates ((APZ)) as Buy (1) –

Bond markets now imply an RBA cash rate of 4.6% by December, up from 4.1%, observes Moelis, before gradually declining to 4.2% by November 2024.

Given the rising interest rate environment, the broker weighs the impact upon small-and mid-cap real estate exposures under its research coverage. On average, FY24 and FY25 earnings per unit (EPU) fall by -2.0% and -2.4%, respectively.

In general terms, the analysts note the REITs most impacted by higher interest rates have some of the following characteristics: higher gearing, less hedging, lower cap rates and fixed rental increases. Landlords lacking bargaining power with tenants may also suffer from not passing on inflation.

For Aspen Group, Moelis raises its target to $2.22 from $2.17. Add.

This report was published on June 26, 2023.

Target price is $2.22 Current Price is $1.78 Difference: $0.44
If APZ meets the Moelis target it will return approximately 25% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 7.50 cents and EPS of 11.80 cents.
At the last closing share price the estimated dividend yield is 4.21%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.08.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 8.40 cents and EPS of 12.20 cents.
At the last closing share price the estimated dividend yield is 4.72%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.59.

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

Moelis rates ((ARF)) as Hold (3) –

Bond markets now imply an RBA cash rate of 4.6% by December, up from 4.1%, observes Moelis, before gradually declining to 4.2% by November 2024.

Given the rising interest rate environment, the broker weighs the impact upon small-and mid-cap real estate exposures under its research coverage. On average, FY24 and FY25 earnings per unit (EPU) fall by -2.0% and -2.4%, respectively.

In general terms, the analysts note the REITs most impacted by higher interest rates have some of the following characteristics: higher gearing, less hedging, lower cap rates and fixed rental increases. Landlords lacking bargaining power with tenants may also suffer from not passing on inflation.

For Arena REIT, the target rises to $3.76 from $3.71. Hold.

This report was published on June 26, 2023.

Target price is $3.76 Current Price is $3.77 Difference: minus $0.01 (current price is over target).
If ARF meets the Moelis target it will return approximately minus 0% (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 17.40 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 21.67.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 17.80 cents and EPS of 18.20 cents.
At the last closing share price the estimated dividend yield is 4.72%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.71.

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

BPT    BEACH ENERGY LIMITED

Crude Oil – Overnight Price: $1.31

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

Wilsons initiates coverage of Beach Energy with an Overweight rating and $2.01 target. The broker expects material increases in oil and gas production, earnings and yield over the next three years.

This is associated with the commencement of LNG sales in the first half of FY24 via the LNG plant in the North West Shelf, and 60 TJ/d gas production throughput via the Otway gas plant into the east coast market.

This report was published on June 23, 2023.

Target price is $2.01 Current Price is $1.31 Difference: $0.695
If BPT meets the Wilsons target it will return approximately 53% (excluding dividends, fees and charges).
Current consensus price target is $1.85, suggesting upside of 40.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 4.00 cents and EPS of 18.20 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 7.23.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.8, implying annual growth of -28.1%.
Current consensus DPS estimate is 4.3, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 8.3.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 4.00 cents and EPS of 23.90 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 5.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 21.4, implying annual growth of 35.4%.
Current consensus DPS estimate is 5.6, implying a prospective dividend yield of 4.3%.
Current consensus EPS estimate suggests the PER is 6.1.

Market Sentiment: 0.6
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: $20.45

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

US Midwest  HRC prices have fallen -27% since the recent peak in April, Jarden observes. The main driver of the decline, industry feedback indicates, have been service centres sitting out of the spot market as they anticipate a pullback in steel prices.

The broker estimates BlueScope Steel's lagged US realised spread has averaged US$443/mt over the second half. Jarden believes US steel maker price increases in response to the decline in spot prices should support HRC and potentially put a floor under the spread.

Overweight rating maintained. Target is $23.50.

This report was published on June 22, 2023.

Target price is $23.50 Current Price is $20.45 Difference: $3.05
If BSL meets the Jarden target it will return approximately 15% (excluding dividends, fees and charges).
Current consensus price target is $21.14, suggesting upside of 3.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden 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 2.44%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.28.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 248.1, implying annual growth of -56.6%.
Current consensus DPS estimate is 50.0, implying a prospective dividend yield of 2.4%.
Current consensus EPS estimate suggests the PER is 8.2.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 50.00 cents and EPS of 190.50 cents.
At the last closing share price the estimated dividend yield is 2.44%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.73.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 190.3, implying annual growth of -23.3%.
Current consensus DPS estimate is 50.0, implying a prospective dividend yield of 2.4%.
Current consensus EPS estimate suggests the PER is 10.7.

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

BWP    BWP TRUST

REITs – Overnight Price: $3.59

Moelis rates ((BWP)) as Upgrade to Hold from Sell (3) –

Bond markets now imply an RBA cash rate of 4.6% by December, up from 4.1%, observes Moelis, before gradually declining to 4.2% by November 2024.

Given the rising interest rate environment, the broker weighs the impact upon small-and mid-cap real estate exposures under its research coverage. On average, FY24 and FY25 earnings per unit (EPU) fall by -2.0% and -2.4%, respectively.

In general terms, the analysts note the REITs most impacted by higher interest rates have some of the following characteristics: higher gearing, less hedging, lower cap rates and fixed rental increases. Landlords lacking bargaining power with tenants may also suffer from not passing on inflation.

For BWP Trust, thebroker's  target rises to $3.73 from $3.69 and the rating is upgraded to Hold from Sell.

This report was published on June 26, 2023.

Target price is $3.73 Current Price is $3.59 Difference: $0.14
If BWP meets the Moelis target it will return approximately 4% (excluding dividends, fees and charges).
Current consensus price target is $3.63, suggesting upside of 1.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 18.30 cents and EPS of 18.30 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 19.62.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.9, implying annual growth of -76.4%.
Current consensus DPS estimate is 18.2, implying a prospective dividend yield of 5.1%.
Current consensus EPS estimate suggests the PER is 20.1.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 18.40 cents and EPS of 18.30 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 19.62.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.1, implying annual growth of 1.1%.
Current consensus DPS estimate is 18.2, implying a prospective dividend yield of 5.1%.
Current consensus EPS estimate suggests the PER is 19.8.

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

COH    COCHLEAR LIMITED

Medical Equipment & Devices – Overnight Price: $226.47

Jarden rates ((COH)) as Neutral (3) –

The UK CMA has a final report on Cochlear's proposed acquisition of Oticon Medical. The CMA does not find competition concerns and will allow the acquisition, although the bone-anchored business would result in a substantial lessening of competition and therefore Cochlear has been prohibited from purchasing that division.

Other regulators such as the ACCC and European Commission have not finalised their views and appear to have been waiting for the UK's decision. Conservatively, Jarden assumes they will follow suit.

Neutral rating maintained. Target is reduced to $221.42 from $224.71.

This report was published on June 22, 2023.

Target price is $221.42 Current Price is $226.47 Difference: minus $5.05 (current price is over target).
If COH 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 $223.43, suggesting downside of -1.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 333.90 cents and EPS of 471.00 cents.
At the last closing share price the estimated dividend yield is 1.47%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 48.08.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 463.0, implying annual growth of 5.3%.
Current consensus DPS estimate is 330.5, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 48.9.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 370.60 cents and EPS of 566.90 cents.
At the last closing share price the estimated dividend yield is 1.64%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 39.95.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 521.8, implying annual growth of 12.7%.
Current consensus DPS estimate is 367.5, implying a prospective dividend yield of 1.6%.
Current consensus EPS estimate suggests the PER is 43.4.

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

DLI    DELTA LITHIUM LIMITED

New Battery Elements – Overnight Price: $0.88

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

Delta Lithium has released more results from the Yinnetharra lithium project in Western Australia.

Canaccord Genuity notes two new assays from the Malinda prospect are among the highest tenor returned to date across the project, giving 33m at 1.9% lithium from 218m and 19m at 1.6% lithium from 190m.

The news flow will continue, with assays for 102 holes outstanding. The broker notes the business is well funded following the announcement that Idemitsu had  invested $46.4m via a placement, to own 15% of the company.

Speculative Buy rating retained. Target is $1.25.

This report was published on June 23, 2023.

Target price is $1.25 Current Price is $0.88 Difference: $0.37
If DLI meets the Canaccord Genuity target it will return approximately 42% (excluding dividends, fees and charges).

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

HLO    HELLOWORLD TRAVEL LIMITED

Travel, Leisure & Tourism – Overnight Price: $2.62

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

Helloworld Travel will acquire Express Travel Group for $70m and expects the deal to be accretive to EPS from FY24 onwards. The deal will be funded by a combination of cash and equity.

Jarden highlights the lack of a trading update with the announcement, and interprets this to mean there is no change to EBITDA guidance of $38-42m.

The broker remains positive on the outlook and envisages upside risk in FY24. Overweight maintained. Target is steady at $3.98.

This report was published on June 22, 2023.

Target price is $3.98 Current Price is $2.62 Difference: $1.36
If HLO meets the Jarden target it will return approximately 52% (excluding dividends, fees and charges).
Current consensus price target is $3.23, suggesting upside of 23.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 EPS of 9.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.11.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 10.0, implying annual growth of -82.9%.
Current consensus DPS estimate is 6.0, implying a prospective dividend yield of 2.3%.
Current consensus EPS estimate suggests the PER is 26.2.

Forecast for FY24:

Jarden forecasts a full year FY24 EPS of 17.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.23.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 14.0, implying annual growth of 40.0%.
Current consensus DPS estimate is 7.5, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 18.7.

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

LRS    LATIN RESOURCES LIMITED

Mining – Overnight Price: $0.24

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

Latin Resources has an upgraded resource for Salinas lithium project in Brazil. Resources now total 45mt at 1.32%. The upgrade is primarily stemming from successful drilling at Colina West and has exceeded Canaccord Genuity's prior expectations.

Currently, the company is partway through a major 65,000m drilling program targeting infill/extensions at Colina/Colina West.

The broker updates its modelling development/production scenario on the back of the upgrade, now expecting a 10-year 3mtpa project. Speculative Buy ratting reiterated. Target is raised to $0.45 from $0.25.

This report was published on June 23, 2023.

Target price is $0.45 Current Price is $0.24 Difference: $0.205
If LRS meets the Canaccord Genuity target it will return approximately 84% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY23:

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

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS 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

PPE    PEOPLEIN LIMITED

Jobs & Skilled Labour Services – Overnight Price: $2.22

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

PeopleIN has underperformed the small industrials by more than -20% in less than a month and Petra Capital reviews the investment thesis.

The broker observes the market is pricing in a significant decline in earnings in FY24, which seems unlikely given a tight labour market and tailwinds in certain sectors.

As a result, the broker believes investors that are willing to look through the uncertain economic environment will be rewarded. Buy rating reiterated. Target is reduced to $4.20 from $4.90.

This report was published on June 26, 2023.

Target price is $4.20 Current Price is $2.22 Difference: $1.98
If PPE 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 14.50 cents and EPS of 37.50 cents.
At the last closing share price the estimated dividend yield is 6.53%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.92.

Forecast for FY24:

Petra Capital forecasts a full year FY24 dividend of 16.00 cents and EPS of 41.00 cents.
At the last closing share price the estimated dividend yield is 7.21%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.41.

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

SGLLV    RICEGROWERS LIMITED

Food, Beverages & Tobacco – Overnight Price: $6.45

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

Canaccord Genuity observes another "pleasing" result in FY23 that comfortably beat expectations and rewarded shareholders through a $0.40 final dividend.

The broker highlights the scale and operating diversity that has allowed Ricegrowers to focus on demand and price dynamics.

Annualised price increases and cost relief in some areas will drive revenue and earnings growth into FY24 and the broker rolls forward a 29% upgrade to estimates.

Buy rating maintained. Target rises to $9.45 from $8.88.

This report was published on June 23, 2023.

Target price is $9.45 Current Price is $6.45 Difference: $3
If SGLLV meets the Canaccord Genuity target it will return approximately 47% (excluding dividends, fees and charges).
The company's fiscal year ends in April.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 50.00 cents and EPS of 91.00 cents.
At the last closing share price the estimated dividend yield is 7.75%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.09.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 48.00 cents and EPS of 96.00 cents.
At the last closing share price the estimated dividend yield is 7.44%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.72.

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

SMR    STANMORE RESOURCES LIMITED

Coal – Overnight Price: $2.56

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

Petra Capital notes recent media reports have flagged indicative bids for Daunia and Blackwater ranging from US$3.5bn to above US$5bn.

The broker estimates Daunia would represent around 30% of the asset value, and therefore this is well above its internal estimates and much higher than current market ratings for producers.

If, and the broker suggests this is a big IF, the reports are true, this would indicate listed coal equities are due a substantial re-rating.

At the high-end of the reported price range, the implied value for Stanmore Resources would be $9.55 a share. Petra Capital maintains a Buy rating with a target of $5.38.

This report was published on June 23, 2023.

Target price is $5.38 Current Price is $2.56 Difference: $2.82
If SMR meets the Petra Capital target it will return approximately 110% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY23:

Petra Capital forecasts a full year FY23 dividend of 32.23 cents and EPS of 122.40 cents.
At the last closing share price the estimated dividend yield is 12.59%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 2.09.

Forecast for FY24:

Petra Capital forecasts a full year FY24 dividend of 33.87 cents and EPS of 81.25 cents.
At the last closing share price the estimated dividend yield is 13.23%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 3.15.

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

STX    STRIKE ENERGY LIMITED

NatGas – Overnight Price: $0.43

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

Wilsons initiates coverage on Strike Energy with an Overweight rating and $0.52 target. Gas 2P reserves are set for growth from low-risk near-field appraisal exploration.

Existing 2P reserves at South Erregulla, West Erregulla and Walyering could increase to a total of 1293 PJe, more than tripling existing 2P reserves.

Wilsons attributes over $1bn net to existing prospects and the Ocean Hill contingent resource. Appraisal activity should shed light on the commerciality around the Ocean Hill 306 PJe 2C resource.

This report was published on June 23, 2023.

Target price is $0.52 Current Price is $0.43 Difference: $0.09
If STX meets the Wilsons target it will return approximately 21% (excluding dividends, fees and charges).
Current consensus price target is $0.54, suggesting upside of 26.4%(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 0.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 61.43.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -0.5, 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 0.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 53.75.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 0.3, 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 143.3.

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

XRO    XERO LIMITED

Accountancy – Overnight Price: $113.02

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

Jarden believes Xero can make further headway on cost reductions by returning its focus to the core accounting software business. The broker now forecasts the free cash flow margin will grow to 49% in FY35 (terminal), from 3% today.

The broker emphasises investors should not expect the turnaround overnight. Short-term changes will likely affect efficiency and markets remain volatile, yet over a 2-3 year horizon the business should be primed for strong growth.

Overweight rating reiterated. Target rises to $128 from $106.

This report was published on June 23, 2023.

Target price is $128.00 Current Price is $113.02 Difference: $14.98
If XRO meets the Jarden target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $109.62, suggesting downside of -3.0%(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 73.97 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 152.79.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 86.3, 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 131.0.

Forecast for FY25:

Jarden forecasts a full year FY25 EPS of 107.11 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 105.51.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 150.1, implying annual growth of 73.9%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 75.3.

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

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