Australian Broker Call *Extra* Edition – Jun 30, 2023

This story features ANZ GROUP HOLDINGS LIMITED, and other companies. For more info SHARE ANALYSIS: ANZ

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)

ANZ   AZS   CAJ   CKF (3)   CNB   CU6   CUV   DDH (2)   FSG   HVN   MDR   MPL (2)   PRN (2)   SHL   SUN   WBC  

ANZ    ANZ GROUP HOLDINGS LIMITED

Banks – Overnight Price: $23.71

Goldman Sachs rates ((ANZ)) as Upgrade to Buy from Neutral (1) –

Goldman Sachs believes the value of ANZ Bank's institutional business is underestimated. This is the bank's largest division representing around 33% of group revenue.

The 2016 plan to focus on returns has meant the division's client numbers have been reduced to a more profitable set of core customers while regional offices were consolidated.

Transaction banking revenue has also shifted towards higher-returning payments and cash management.

Given a more optimistic view around the sustainability of the improved institutional returns the broker upgrades to Buy from Neutral and raises the target to $27.38 from $26.17.

This report was published on June 28, 2023.

Target price is $27.38 Current Price is $23.71 Difference: $3.67
If ANZ meets the Goldman Sachs target it will return approximately 15% (excluding dividends, fees and charges).
Current consensus price target is $26.49, suggesting upside of 11.7%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 162.00 cents and EPS of 239.00 cents.
At the last closing share price the estimated dividend yield is 6.83%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.92.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 240.9, implying annual growth of -3.6%.
Current consensus DPS estimate is 162.5, implying a prospective dividend yield of 6.9%.
Current consensus EPS estimate suggests the PER is 9.8.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 162.00 cents and EPS of 217.00 cents.
At the last closing share price the estimated dividend yield is 6.83%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.93.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 227.2, implying annual growth of -5.7%.
Current consensus DPS estimate is 163.0, implying a prospective dividend yield of 6.9%.
Current consensus EPS estimate suggests the PER is 10.4.

Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

AZS    AZURE MINERALS LIMITED

Mining – Overnight Price: $1.65

Canaccord Genuity rates ((AZS)) as Initiation of coverage with Speculative Buy (1) –

Canaccord Genuity initiates coverage of Azure Minerals with a Speculative Buy rating and $2.25 target. The company's Andover lithium project in Western Australia is surrounded by world-class infrastructure.

The broker observes the discovery of lithium at Andover is in its infancy but there is already significant scale potential. Coupled with the strategic location this bodes well for the business and Canaccord Genuity values the early-stage stock on an unfunded NAV basis.

This report was published on June 27, 2023.

Target price is $2.25 Current Price is $1.65 Difference: $0.6
If AZS meets the Canaccord Genuity target it will return approximately 36% (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

CAJ    CAPITOL HEALTH LIMITED

Healthcare services – Overnight Price: $0.27

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

Capitol Health's latest trading update suggests to Wilsons labour costs and workforce constraints continue to restrict the bounce back in imaging volumes, weighing on margins.

Earnings (EBITDA) guidance was a -7% miss versus the broker's forecast and the implied H2 earnings margin is in the range of 18-19%, a decline from the 20.1% in H1.

Management noted some other cost pressures including temporary higher recruitment expenditure (onboarding of additional Radiologists) and increased clinic occupancy costs.

The broker expects downgrades to consensus forecasts for Capitol Health and its own forecasts are under review. Overweight. Target 35c.

This report was published on June 29, 2023.

Target price is $0.35 Current Price is $0.27 Difference: $0.085
If CAJ meets the Wilsons target it will return approximately 32% (excluding dividends, fees and charges).
Current consensus price target is $0.34, 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 1.20 cents and EPS of 1.00 cents.
At the last closing share price the estimated dividend yield is 4.53%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 0.9, implying annual growth of -13.5%.
Current consensus DPS estimate is 0.9, implying a prospective dividend yield of 3.4%.
Current consensus EPS estimate suggests the PER is 29.4.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 1.30 cents and EPS of 1.40 cents.
At the last closing share price the estimated dividend yield is 4.91%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.93.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1.3, implying annual growth of 44.4%.
Current consensus DPS estimate is 1.0, implying a prospective dividend yield of 3.8%.
Current consensus EPS estimate suggests the PER is 20.4.

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

CKF    COLLINS FOODS LIMITED

Food, Beverages & Tobacco – Overnight Price: $9.56

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

Collins Foods posted FY23 EBITDA of $141.4m, ahead of Canaccord Genuity's estimates, underpinned by the second half performance in KFC Europe.

The broker observes price and marketing strategies have been "executed adeptly" and there is evidence of strong same-store sales momentum in FY24 to date, although cost pressures should still be "front-of-mind".

Management has guided to a broadly neutral margin environment for KFC Australia in FY24. The broker retains a Hold rating pending evidence of transaction growth for KFC Australia which is considered a requirement for any margin recovery going forward. Target is raised to $8.80 from $7.25.

This report was published on June 28, 2023.

Target price is $8.80 Current Price is $9.56 Difference: minus $0.76 (current price is over target).
If CKF meets the Canaccord Genuity target it will return approximately minus 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $9.95, suggesting upside of 4.1%(ex-dividends)
The company's fiscal year ends in May.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 32.00 cents and EPS of 45.00 cents.
At the last closing share price the estimated dividend yield is 3.35%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.24.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 45.4, implying annual growth of 317.3%.
Current consensus DPS estimate is 29.3, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 21.1.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 35.00 cents and EPS of 58.00 cents.
At the last closing share price the estimated dividend yield is 3.66%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.48.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 58.7, implying annual growth of 29.3%.
Current consensus DPS estimate is 33.2, implying a prospective dividend yield of 3.5%.
Current consensus EPS estimate suggests the PER is 16.3.

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

---

Jarden rates ((CKF)) as Neutral (3) –

FY23 EBITDA beat Jarden's estimates and the trading update was stronger as well. Significantly, KFC appears to have extended its value position across both Europe and Australia, with the broker noting sales surpassing those of peers and costs better controlled.

Management expects some margin pressure in FY24 before an improvement in FY25. Taco Bell losses are also set to ease in FY24 with the roll-out paused.

Jarden is becoming more confident in the stock although still considers there is some risk in FY24 as costs rise. Forecasts for EPS are upgraded by 4-10% for FY24-25. Neutral maintained. Target rises to $9.20 from $8.50.

This report was published on June 27, 2023.

Target price is $9.20 Current Price is $9.56 Difference: minus $0.36 (current price is over target).
If CKF meets the Jarden target it will return approximately minus 4% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $9.95, suggesting upside of 4.1%(ex-dividends)
The company's fiscal year ends in May.

Forecast for FY24:

Jarden forecasts a full year FY24 EPS of 40.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.78.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 45.4, implying annual growth of 317.3%.
Current consensus DPS estimate is 29.3, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 21.1.

Forecast for FY25:

Jarden forecasts a full year FY25 EPS of 49.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.43.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 58.7, implying annual growth of 29.3%.
Current consensus DPS estimate is 33.2, implying a prospective dividend yield of 3.5%.
Current consensus EPS estimate suggests the PER is 16.3.

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

---

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

Wilsons found the FY23 result robust as it modestly exceeded forecasts amid stronger same-store sales growth and higher KFC Europe margins.

Confirmation of an acceleration in new store openings in KFC Europe should present an important catalyst to garner confidence in the long-term growth profile, the broker adds. No explicit guidance was provided.

Elevated inflation and supply chain disruptions continue to counteract what the broker observes is normally attractive and predictable margins. This is considered largely a timing issue. Overweight maintained. Target is reduced to $11.16 from $11.49.

This report was published on June 28, 2023.

Target price is $11.16 Current Price is $9.56 Difference: $1.6
If CKF meets the Wilsons target it will return approximately 17% (excluding dividends, fees and charges).
Current consensus price target is $9.95, suggesting upside of 4.1%(ex-dividends)
The company's fiscal year ends in May.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 27.00 cents and EPS of 41.70 cents.
At the last closing share price the estimated dividend yield is 2.82%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.93.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 45.4, implying annual growth of 317.3%.
Current consensus DPS estimate is 29.3, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 21.1.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 27.00 cents and EPS of 56.20 cents.
At the last closing share price the estimated dividend yield is 2.82%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.01.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 58.7, implying annual growth of 29.3%.
Current consensus DPS estimate is 33.2, implying a prospective dividend yield of 3.5%.
Current consensus EPS estimate suggests the PER is 16.3.

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

CNB    CARNABY RESOURCES LIMITED

Mining – Overnight Price: $1.05

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

Carnaby Resources has flagged a high-grade copper sulphide intersection at depth at Mount Hope Central, which indicates the presence of a third lode running below the Chalcus lode.

A program is underway to test for extensions. Petra Capital observes a stack of three lodes would significantly enhance the deposit scale and mineable geometry.

The broker suspects, with the company in the fortunate position of finding more the more it drills at Mount Hope, the timing of a maiden resource, currently guided for September quarter, could be pushed out. Buy rating and $1.89 target maintained.

This report was published on June 28, 2023.

Target price is $1.89 Current Price is $1.05 Difference: $0.84
If CNB meets the Petra Capital target it will return approximately 80% (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

CU6    CLARITY PHARMACEUTICALS LIMITED

Medical Equipment & Devices – Overnight Price: $0.69

Wilsons rates ((CU6)) as Overweight (1) –

Clarity Pharmaceuticals has welcomed the successful completion of large-scale manufacturing runs of its therapeutic radioisotope, 67-Copper, by its manufacturing partner, North Star Radioisotopes

Wilsons observes this is a "huge milestone" and the announcement de-risks supply and manufacture. The broker retains an Overweight rating and $1.22 target.

This report was published on June 27, 2023.

Target price is $1.22 Current Price is $0.69 Difference: $0.525
If CU6 meets the Wilsons target it will return approximately 76% (excluding dividends, fees and charges).
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 9.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 7.02.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 11.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 6.32.

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

CUV    CLINUVEL PHARMACEUTICALS LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $17.98

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

Clinuvel Pharmaceuticals has confirmed the Scenesse Phase II program, CUV105, is awaiting ethics approval with clinical site recruitment currently underway and first patients expected in the second half of 2023.

The trial will differentiate in its choice of primary endpoint, demonstrating the focus on treating broad de-pigmentation as opposed to limited facial depigmentation only.

Wilsons maintains an Overweight rating and $30.07 target, noting that vitiligo accounts for around 25% of the current risked valuation.

This report was published on June 26, 2023.

Target price is $30.07 Current Price is $17.98 Difference: $12.09
If CUV meets the Wilsons target it will return approximately 67% (excluding dividends, fees and charges).

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

DDH    DDH1 LIMITED

Mining Sector Contracting – Overnight Price: $0.85

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

Perenti has offered $0.1238 cash plus 0.7111 shares for each DDH1 share via a scheme of arrangement.

Canaccord Genuity observes the transaction has been announced during a low point in the current mineral drilling cycle although the scrip component ensure some of the recovery is captured.

Given the response in the Perenti share price and the discount it trades at, the broker envisages limited potential for a sweeter offer and cannot completely rule out a competing bid. Buy rating retained for DDH1. Target is reduced to $1.08 from $1.30.

This report was published on June 27, 2023.

Target price is $1.08 Current Price is $0.85 Difference: $0.23
If DDH meets the Canaccord Genuity target it will return approximately 27% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 6.70 cents and EPS of 10.70 cents.
At the last closing share price the estimated dividend yield is 7.88%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.94.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 5.60 cents and EPS of 11.80 cents.
At the last closing share price the estimated dividend yield is 6.59%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.20.

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

---

Moelis rates ((DDH)) as No Rating (-1) –

Perenti has offered $0.1238 cash plus 0.7111 shares for each DDH1 share via a scheme of arrangement, with the implied offer price of $1.01per share. Perenti shareholders would own 71% of the combined entity.

Perenti notes the strategic rationale for the deal means accretive outcomes for all shareholders amid enhanced scale and a global service offering. Moelis is currently restricted on providing a rating or target.

This report was published on June 27, 2023.

Current Price is $0.85. Target price not assessed.
The company's fiscal year ends in June.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 5.60 cents and EPS of 12.70 cents.
At the last closing share price the estimated dividend yield is 6.59%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.69.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 5.40 cents and EPS of 13.40 cents.
At the last closing share price the estimated dividend yield is 6.35%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.34.

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

FSG    FIELD SOLUTIONS HOLDINGS LIMITED

Telecommunication – Overnight Price: $0.05

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

Canaccord Genuity assesses a positive outcome for Field Solutions from the recent decision by the Australian Competition Tribunal to deny TPG Telecom ((TPG)) the right to use Telstra's ((TLS)) towers in regional Australia.

Field Solutions is working with Optus in a number of shared network infrastructure trials.

Additionally, the company is working on several smaller network expansion programs, while also aiming to finish building 127 telecommunication towers in rural, regional and remote Australia.

The Speculative Buy rating and 19c target are unchanged.

This report was published on June 29, 2023.

Target price is $0.19 Current Price is $0.05 Difference: $0.144
If FSG meets the Canaccord Genuity target it will return approximately 313% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 0.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 5.75.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of 0.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.50.

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

HVN    HARVEY NORMAN HOLDINGS LIMITED

Consumer Electronics – Overnight Price: $3.47

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

Harvey Norman's update was broadly in line with Goldman Sachs' expectations as the stock had recently been downgraded to Neutral amid concerns over market share loss.

This in turn will have implications for increased tactical support and cash and Goldman Sachs awaits more "colour" from the FY23 result. Target is $3.40.

This report was published on June 28, 2023.

Target price is $3.40 Current Price is $3.47 Difference: minus $0.07 (current price is over target).
If HVN meets the Goldman Sachs target it will return approximately minus 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $3.56, suggesting upside of 2.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 31.00 cents and EPS of 36.00 cents.
At the last closing share price the estimated dividend yield is 8.93%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.64.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 37.9, implying annual growth of -41.8%.
Current consensus DPS estimate is 25.3, implying a prospective dividend yield of 7.3%.
Current consensus EPS estimate suggests the PER is 9.2.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 27.00 cents and EPS of 31.00 cents.
At the last closing share price the estimated dividend yield is 7.78%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.19.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 31.0, implying annual growth of -18.2%.
Current consensus DPS estimate is 21.6, implying a prospective dividend yield of 6.2%.
Current consensus EPS estimate suggests the PER is 11.2.

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

MDR    MEDADVISOR LIMITED

Healthcare services – Overnight Price: $0.24

Canaccord Genuity rates ((MDR)) as Initiation of coverage with Buy (1) –

Canaccord Genuity initiates coverage of MedAdviser with a Buy rating and $0.39 target. The digital health company started as a SaaS medication adherence software tool and has evolved through R&D and acquisitions into leveraging big pharmaceutical customers.

A strategic shift to focus on the US market is occurring along with higher value pharmaceutical offerings, repeat vaccine opportunities and an omni channel approach.

The broker considers FY23 in FY24 investment years for the business while the company integrates the Gild acquisition and expands its omni channel strategy.

This report was published on June 28, 2023.

Target price is $0.39 Current Price is $0.24 Difference: $0.15
If MDR meets the Canaccord Genuity target it will return approximately 63% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of 2.24 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.71.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of 0.46 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 52.17.

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

MPL    MEDIBANK PRIVATE LIMITED

Insurance – Overnight Price: $3.53

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

APRA has announced a $250m capital charge in relation to the cybercrime event on Medibank Private until an agreed remediation program of work is completed. The regulator is also looking to conduct a technology review with a particular focus on governance and risk culture.

Post the charge, the company expects to have unallocated capital of around $148m which includes retained earnings and an allowance for dividends accrued over the second half of FY23.

As a result, Goldman Sachs assesses the implied dividend indicates a payout ratio at, or slightly below, the lower end of the target range of 75-85% of underlying net profit.

On the broker's calculations this means a dividend of around 5-6.7c per share over the second half versus 7.3c in the previous comparable half. Neutral rating and $3.69 target.

This report was published on June 27, 2023.

Target price is $3.69 Current Price is $3.53 Difference: $0.16
If MPL meets the Goldman Sachs target it will return approximately 5% (excluding dividends, fees and charges).
Current consensus price target is $3.51, suggesting downside of -0.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 15.00 cents and EPS of 18.00 cents.
At the last closing share price the estimated dividend yield is 4.25%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.61.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.8, implying annual growth of 24.5%.
Current consensus DPS estimate is 14.3, implying a prospective dividend yield of 4.1%.
Current consensus EPS estimate suggests the PER is 19.8.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 16.00 cents and EPS of 20.00 cents.
At the last closing share price the estimated dividend yield is 4.53%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.65.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.2, implying annual growth of 2.2%.
Current consensus DPS estimate is 14.9, implying a prospective dividend yield of 4.2%.
Current consensus EPS estimate suggests the PER is 19.4.

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

---

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

APRA will impose an additional $250m operating risk capital charge on Medibank Private from July 1 2023 following the cybercrime event. The additional charge will remain in place until the company completes an agreed cyber remediation program to strengthen systems.

The company has also confirmed there is sufficient capital capacity to absorb the additional impost, though Jarden suspects it could increase the likelihood of Tier 2 debt issuance to provide flexibility.

The broker also envisages broader sector implications for private health insurers and other APRA-regulated financials in regard to capital buffers given the rising cyber risks.

Overweight rating retained with a target of $3.80.

This report was published on June 27, 2023.

Target price is $3.80 Current Price is $3.53 Difference: $0.27
If MPL meets the Jarden target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $3.51, suggesting downside of -0.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 15.40 cents and EPS of 18.60 cents.
At the last closing share price the estimated dividend yield is 4.36%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.98.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.8, implying annual growth of 24.5%.
Current consensus DPS estimate is 14.3, implying a prospective dividend yield of 4.1%.
Current consensus EPS estimate suggests the PER is 19.8.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 17.10 cents and EPS of 20.00 cents.
At the last closing share price the estimated dividend yield is 4.84%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.65.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.2, implying annual growth of 2.2%.
Current consensus DPS estimate is 14.9, implying a prospective dividend yield of 4.2%.
Current consensus EPS estimate suggests the PER is 19.4.

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

PRN    PERENTI LIMITED

Mining Sector Contracting – Overnight Price: $1.07

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

Perenti has offered $0.1238 cash plus 0.7111 shares for each DDH1 share via a scheme of arrangement. The transaction is seen improving cash flow for Perenti by 30% in FY23 and increasing to an estimated 111% in FY24.

Canaccord Genuity observes the company is acquiring a higher EBIT margin business with lower capital intensity and an operating model that has proved to be successful through the cycle.

The broker also suspects the services of DDH1 could provide more options and growth around Perenti's aspirations in North America. Buy rating maintained. Target is reduced to $1.44 from $1.51.

This report was published on June 27, 2023.

Target price is $1.44 Current Price is $1.07 Difference: $0.37
If PRN meets the Canaccord Genuity target it will return approximately 35% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of 18.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.94.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of 19.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.57.

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

---

Moelis rates ((PRN)) as No Rating (-1) –

Perenti has offered $0.1238 cash plus 0.7111 shares for each DDH1 share via a scheme of arrangement, with the implied offer price of $1.01per share. Perenti shareholders would own 71% of the combined entity.

Perenti notes the strategic rationale for the deal means accretive outcomes for all shareholders amid enhanced scale and a global service offering. Moelis is currently restricted on providing a rating or target.

This report was published on June 27, 2023.

Current Price is $1.07. Target price not assessed.
The company's fiscal year ends in June.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 0.00 cents and EPS of 16.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.56.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 0.00 cents and EPS of 17.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.22.

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

SHL    SONIC HEALTHCARE LIMITED

Healthcare services – Overnight Price: $36.11

Jarden rates ((SHL)) as Neutral (3) –

Sonic Healthcare will acquire Synlab's Swiss operations for CHF150m. The company expects all three of its recent acquisitions to be accretive in year 1, although the Synlab acquisition is set to take two years to generate a return above the cost of capital.

Jarden observes the acquisition appeared uncontested and opportunistic and upgrades EPS forecast for FY25 and FY26 by 1.7% and 2.4%, respectively. Neutral rating maintained. Target is raised to $32.92 from $32.27.

This report was published on June 27, 2023.

Target price is $32.92 Current Price is $36.11 Difference: minus $3.19 (current price is over target).
If SHL meets the Jarden target it will return approximately minus 9% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $35.62, suggesting downside of -1.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 92.00 cents and EPS of 152.80 cents.
At the last closing share price the estimated dividend yield is 2.55%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.63.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 154.0, implying annual growth of -49.6%.
Current consensus DPS estimate is 98.0, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 23.4.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 100.00 cents and EPS of 158.50 cents.
At the last closing share price the estimated dividend yield is 2.77%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.78.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 152.8, implying annual growth of -0.8%.
Current consensus DPS estimate is 108.9, implying a prospective dividend yield of 3.0%.
Current consensus EPS estimate suggests the PER is 23.6.

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

SUN    SUNCORP GROUP LIMITED

Insurance – Overnight Price: $12.97

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

As the RAC Queensland has decided to withdraw from the state CTP insurance market its share of business will be redistributed amongst existing operators. RACQ has a market share of 25% with Suncorp Group at 42%. Goldman Sachs calculates incremental premiums of around $100m are possible for Suncorp.

Separately, the broker does note that the scheme profitability has deteriorated and there will likely be renewed focus on margin sustainability for the rest of the industry going forward, which could be viewed as a positive. Buy rating retained. Target is steady at $14.53.

This report was published on June 29, 2023.

Target price is $14.53 Current Price is $12.97 Difference: $1.56
If SUN meets the Goldman Sachs target it will return approximately 12% (excluding dividends, fees and charges).
Current consensus price target is $14.59, suggesting upside of 7.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 79.00 cents and EPS of 105.00 cents.
At the last closing share price the estimated dividend yield is 6.09%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.35.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 101.4, implying annual growth of 88.5%.
Current consensus DPS estimate is 76.8, implying a prospective dividend yield of 5.6%.
Current consensus EPS estimate suggests the PER is 13.4.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 79.00 cents and EPS of 104.00 cents.
At the last closing share price the estimated dividend yield is 6.09%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.47.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 103.7, implying annual growth of 2.3%.
Current consensus DPS estimate is 80.0, implying a prospective dividend yield of 5.9%.
Current consensus EPS estimate suggests the PER is 13.1.

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

WBC    WESTPAC BANKING CORPORATION

Banks – Overnight Price: $21.42

Goldman Sachs rates ((WBC)) as Downgrade to Neutral from Buy (3) –

Recent feedback on IT and staff costs, coupled with incremental productivity benefits becoming harder, means Goldman Sachs is now expecting some costs growth in FY24 from Westpac.

The bank's relative skew towards consumer lending leaves it more exposed to the macro environment where the broker expects housing lending growth will trough at a 50-year low in March 2024.

The broker downgrades to Neutral from Buy and reduces the target to $23.39 from $24.67.

This report was published on June 28, 2023.

Target price is $23.39 Current Price is $21.42 Difference: $1.97
If WBC meets the Goldman Sachs target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $23.45, suggesting upside of 9.5%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 140.00 cents and EPS of 204.00 cents.
At the last closing share price the estimated dividend yield is 6.54%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 207.3, implying annual growth of 29.6%.
Current consensus DPS estimate is 141.7, implying a prospective dividend yield of 6.6%.
Current consensus EPS estimate suggests the PER is 10.3.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 140.00 cents and EPS of 185.00 cents.
At the last closing share price the estimated dividend yield is 6.54%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.58.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 192.2, implying annual growth of -7.3%.
Current consensus DPS estimate is 143.7, implying a prospective dividend yield of 6.7%.
Current consensus EPS estimate suggests the PER is 11.1.

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

---

Disclaimer:
The content of this information does in no way reflect the opinions of FNArena, or of its journalists. In fact we don't have any opinion about the stock market, its value, future direction or individual shares. FNArena solely reports about what the main experts in the market note, believe and comment on. By doing so we believe we provide experienced, intelligent investors with a valuable tool that helps them in making up their own minds, reading market trends and getting a feel for what is happening beneath the surface.

This document is provided for informational purposes only. It does not constitute an offer to sell or a solicitation to buy any security or other financial instrument. FNArena employs very experienced journalists who base their work on information believed to be reliable and accurate, though no guarantee is given that the daily report is accurate or complete. Investors should contact their personal adviser before making any investment decision.

Decisions about inclusions in this Report are made independently of the providers of stock market research and at full discretion of the team of journalists responsible for content at FNArena. Inclusion does not equal endorsement, in any way, shape or form. This Report is provided for informational purposes only.

Click to view our Glossary of Financial Terms