Australian Broker Call *Extra* Edition – Jul 06, 2023

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

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)

AUB   AZS   CGC   CMM   COF   CU6   DEG   EBR   EVN   GNX   GOR   IAG   IPD   LAU   LFG   LLL   MPL   NAN   NEU   NHF   NST   PDN   PPM   QBE   RMC   RRL   SDF   SHA   SPK   STX   SUN   TLS   TLX   TPG   UMG  

AUB    AUB GROUP LIMITED

Insurance – Overnight Price: $29.13

Jarden rates ((AUB)) as Buy (1) –

Looking past the mostly negative FY23 revisions to EPS, Jarden assesses AUB Group is leveraged positively to higher cash rates, although adjustments for higher corporate costs means EPS forecasts in FY24 are trimmed by -1.4%.

Still, among the insurance brokers Jarden prefers AUB Group for its acquisition integration tailwinds. Buy retained. Target is steady at $32.

This report was published on July 3, 2023.

Target price is $32.00 Current Price is $29.13 Difference: $2.87
If AUB meets the Jarden target it will return approximately 10% (excluding dividends, fees and charges).
Current consensus price target is $29.59, suggesting upside of 1.6%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 62.00 cents and EPS of 123.90 cents.
At the last closing share price the estimated dividend yield is 2.13%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.51.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 123.5, implying annual growth of 17.0%.
Current consensus DPS estimate is 63.3, implying a prospective dividend yield of 2.2%.
Current consensus EPS estimate suggests the PER is 23.6.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 99.00 cents and EPS of 157.90 cents.
At the last closing share price the estimated dividend yield is 3.40%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.45.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 142.1, implying annual growth of 15.1%.
Current consensus DPS estimate is 76.8, implying a prospective dividend yield of 2.6%.
Current consensus EPS estimate suggests the PER is 20.5.

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

AZS    AZURE MINERALS LIMITED

Mining – Overnight Price: $1.59

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

Petra Capital expects the 60%-owned Andover project will be a large lithium discovery for Azure Minerals. The latest intersections confirm a system capable of hosting thick, high-grade spodumene mineralisation.

Yet further drilling is needed to determine the continuity and understand the controlling structures. The broker believes the most prospective targets are yet to be drilled and recommends investors buy ahead of the results.

Target is raised to $2.04 from $1.56 on an improved maiden resource target of 80mt. Buy retained.

This report was published on July 3, 2023.

Target price is $2.04 Current Price is $1.59 Difference: $0.445
If AZS meets the Petra Capital target it will return approximately 28% (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

CGC    COSTA GROUP HOLDINGS LIMITED

Agriculture – Overnight Price: $3.29

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

Costa Group has confirmed an unsolicited non-binding indicative proposal from Paine Schwartz Partners. Shareholders would receive cash of $3.50 and be entitled to any interim dividend declared in relation to the first half of up to 4c per share.

The indicative proposal has followed the acquisition of a 13.78% relevant interest in Costa Group in October 2022.

The proposal is subject to a number of conditions and while Paine Schwartz has signalled approval from the FIRB has been obtained, Wilsons notes this may need to be "refreshed" upon finalisation of any co-investors.

Market Weight rating and $2.44 target maintained.

This report was published on July 4, 2023.

Target price is $2.44 Current Price is $3.29 Difference: minus $0.85 (current price is over target).
If CGC meets the Wilsons target it will return approximately minus 26% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $3.22, suggesting downside of -2.2%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 22.20 cents and EPS of 15.20 cents.
At the last closing share price the estimated dividend yield is 6.75%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.64.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 13.5, implying annual growth of 86.5%.
Current consensus DPS estimate is 9.1, implying a prospective dividend yield of 2.8%.
Current consensus EPS estimate suggests the PER is 24.4.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 15.00 cents and EPS of 17.40 cents.
At the last closing share price the estimated dividend yield is 4.56%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.91.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.6, implying annual growth of 23.0%.
Current consensus DPS estimate is 10.4, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 19.8.

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

CMM    CAPRICORN METALS LIMITED

Gold & Silver – Overnight Price: $4.38

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

Given recent strength in the gold price and gold shares, Goldman Sachs has initiated coverage on six Australian gold companies, and Capricorn Metals is one of them.

The broker observes industry cost inflation appears to be easing but spies macro support for the gold price, adding roll-offs of hedged positions should boost realised prices. All up, Goldman Sachs expects these factors could add another $300oz rise in average margins out to FY25.

Add to that, rising production as one-off imposts most likely subside and continuing merger and acquisition speculation (the broker believes Capricorn Metals looks reasonably attractive given its cash generation asset and Mt Gibson development), and the broker remains upbeat.

Capital expenditure on longer-date projects could drag on some producers but on balance, prices and production should triumph said the broker.

The broker appreciates the company's net cash position ahead of the ramp up of Mt Gibson, but a Neutral rating is applied on valuation and to reflect the company's 40% hedge rate over FY25/26/27. Target price is $4.60.

This report was published on July 3, 2023.

Target price is $4.60 Current Price is $4.38 Difference: $0.22
If CMM meets the Goldman Sachs target it will return approximately 5% (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 24.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.25.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 0.00 cents and EPS of 41.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.68.

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

COF    CENTURIA OFFICE REIT

REITs – Overnight Price: $1.39

Moelis rates ((COF)) as Buy (1) –

Moelis observes the medium-term outlook for the office segment is uncertain, although tenant activity is signalling demand for space is relatively robust.

Total vacancies throughout the country have stayed stable since 2021, at around 14-15%. The broker continues to expect quality portfolios will generate sufficient income over the short to medium term.

In the meantime Centuria Office REIT's income potential is relatively low-risk with vacancies at 2.7% as of March and just 10.6% of expiries due by June 2024. Buy rating maintained. Target is $2.07.

This report was published on July 3, 2023.

Target price is $2.07 Current Price is $1.39 Difference: $0.68
If COF meets the Moelis target it will return approximately 49% (excluding dividends, fees and charges).
Current consensus price target is $1.83, suggesting upside of 31.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 14.10 cents and EPS of 15.90 cents.
At the last closing share price the estimated dividend yield is 10.14%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.74.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.9, implying annual growth of -20.1%.
Current consensus DPS estimate is 14.1, implying a prospective dividend yield of 10.1%.
Current consensus EPS estimate suggests the PER is 8.7.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 13.60 cents and EPS of 15.40 cents.
At the last closing share price the estimated dividend yield is 9.78%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.03.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.5, implying annual growth of -2.5%.
Current consensus DPS estimate is 13.5, implying a prospective dividend yield of 9.7%.
Current consensus EPS estimate suggests the PER is 9.0.

Market Sentiment: 0.7
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: $0.77

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

Wilsons attended a site tour of Clarity Pharmaceuticals' manufacturing partner in Wisconsin. The broker understands approximately US$120m has been invested to date in the "impressive" capability.

Whilst volumes are modest and there is cost optimisation to come, the partner's reduction to practice of photonuclear production using electronic accelerators is considered a major milestone.

The broker retains an Overweight rating and $1.22 target.

This report was published on July 4, 2023.

Target price is $1.22 Current Price is $0.77 Difference: $0.45
If CU6 meets the Wilsons target it will return approximately 58% (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 8.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 9.06.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 10.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 7.55.

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

DEG    DE GREY MINING LIMITED

Gold & Silver – Overnight Price: $1.41

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

Given recent strength in the gold price and gold shares, Goldman Sachs has initiated coverage on six Australian gold companies, and De Grey Mining is one of them.

The broker observes industry cost inflation appears to be easing but spies macro support for the gold price, adding roll-offs of hedged positions should boost realised prices. All up, Goldman Sachs expects these factors could add another $300oz rise in average margins out to FY25.

Add to that, rising production as one-off imposts most likely subside and continuing merger and acquisition speculation (the broker rates De Grey as a strong acquisition target given its high quality asset at Mallina), and the broker remains upbeat.

Capital expenditure on longer-date projects could drag on some producers but on balance, prices and production should triumph said the broker.

The broker Neutral rating applied on valuation grounds, noting elevated risk given the company will soon need to fund development and profitability is several years out. Target price is $1.30.

This report was published on July 3, 2023.

Target price is $1.30 Current Price is $1.41 Difference: minus $0.105 (current price is over target).
If DEG meets the Goldman Sachs target it will return approximately minus 7% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $1.86, suggesting upside of 32.4%(ex-dividends)
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 minus 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 140.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -1.5, 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:

Goldman Sachs forecasts a full year FY24 dividend of 0.00 cents and EPS of 0.00 cents.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -1.6, 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.

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

EBR    EBR SYSTEMS INC

Medical Equipment & Devices – Overnight Price: $0.91

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

Wilsons has visited operations in Sunnyvale, California. Inspecting the recent technical process, the broker is confident EBR Systems will complete its pre-market authorisation application early in 2024.

The company plans to submit its clinical module later this year and the broker understands that a number of manuscripts are planned on the primary Solve-CRT analysis and the study's randomised controlled component.

The Overweight rating is maintained and the target is raised to $1.65 from $1.50.

This report was published on July 4, 2023.

Target price is $1.65 Current Price is $0.91 Difference: $0.74
If EBR meets the Wilsons target it will return approximately 81% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY23:

Wilsons forecasts a full year FY23 EPS of minus 18.88 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 4.82.

Forecast for FY24:

Wilsons forecasts a full year FY24 EPS of minus 21.26 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 4.28.

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

EVN    EVOLUTION MINING LIMITED

Gold & Silver – Overnight Price: $3.42

Goldman Sachs rates ((EVN)) as Initiation of coverage with Buy (1) –

Given recent strength in the gold price and gold shares, Goldman Sachs has initiated coverage on six Australian gold companies, and Evolution Mining is one of them.

The broker observes industry cost inflation appears to be easing but spies macro support for the gold price, adding roll-offs of hedged positions should boost realised prices. All up, Goldman Sachs expects these factors could add another $300oz rise in average margins out to FY25.

Add to that, rising production as one-off imposts most likely subside (the broker expects Evolution Mining should benefit most in this respect) and continuing merger and acquisition speculation (the broker doubts Evolution Mining will attract a bid), and the broker remains upbeat.

Capital expenditure on longer-date projects could drag on some producers but on balance, prices and production should triumph said the broker.

Goldman Sachs favours Evolution Mining to Northern Star Resources, citing less concentrated execution risk and the company's copper exposure, which is delivering the company the strongest margins among peers and offers a defensive hedge to the gold price.

Buy rating and $3.80 target price.

This report was published on July 3, 2023.

Target price is $3.80 Current Price is $3.42 Difference: $0.38
If EVN meets the Goldman Sachs target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $3.33, suggesting downside of -2.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 4.00 cents and EPS of 11.30 cents.
At the last closing share price the estimated dividend yield is 1.17%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.27.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 13.9, implying annual growth of -21.6%.
Current consensus DPS estimate is 4.5, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 24.6.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 6.00 cents and EPS of 36.90 cents.
At the last closing share price the estimated dividend yield is 1.75%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.27.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 27.5, implying annual growth of 97.8%.
Current consensus DPS estimate is 7.4, implying a prospective dividend yield of 2.2%.
Current consensus EPS estimate suggests the PER is 12.4.

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

GNX    GENEX POWER LIMITED

EV, Solar & Batteries – Overnight Price: $0.15

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

J-Power is providing a $35m corporate loan facility to Genex Power to replenish the K2-Hydro contingency as well as general working  capital.

Genex Power has also entered an $8.5m agreement in a joint development whereby J-Power will earn a 50% interest in the Bulli Creek project.

This project is at an early stage and the broker envisages significant valuation uplift at future de-risking points, such as offtake agreements. Buy rating maintained. Target is $0.26.

This report was published on July 3, 2023.

Target price is $0.26 Current Price is $0.15 Difference: $0.105
If GNX meets the Petra Capital target it will return approximately 68% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Petra Capital forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 0.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 155.00.

Forecast for FY24:

Petra Capital forecasts a full year FY24 dividend of 0.20 cents and EPS of 0.10 cents.
At the last closing share price the estimated dividend yield is 1.29%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 155.00.

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

GOR    GOLD ROAD RESOURCES LIMITED

Gold & Silver – Overnight Price: $1.58

Goldman Sachs rates ((GOR)) as Initiation of coverage with Buy (1) –

Given recent strength in the gold price and gold shares, Goldman Sachs has initiated coverage on six Australian gold companies, and Gold Road Resources  is one of the broker's favourite mid cap producers.

The broker observes industry cost inflation appears to be easing but spies macro support for the gold price, adding roll-offs of hedged positions should boost realised prices. All up, Goldman Sachs expects these factors could add another $300oz rise in average margins out to FY25.

Add to that, rising production as one-off imposts most likely subside and continuing merger and acquisition speculation (the broker believes Gold Road Resources has reasonable strategic appeal), and the broker remains upbeat.

Capital expenditure on longer-date projects could drag on some producers but on balance, prices and production should triumph said the broker.

Buy rating applied, the broker observing the company is trading at a discount to valuation and boasts an attractive balance sheet. The broker sits above consensus. Target price is $1.85.

This report was published on July 3, 2023.

Target price is $1.85 Current Price is $1.58 Difference: $0.265
If GOR meets the Goldman Sachs target it will return approximately 17% (excluding dividends, fees and charges).
Current consensus price target is $2.00, suggesting upside of 26.2%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 3.40 cents and EPS of 8.60 cents.
At the last closing share price the estimated dividend yield is 2.15%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.43.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 9.1, implying annual growth of 40.2%.
Current consensus DPS estimate is 2.4, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 17.4.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 3.10 cents and EPS of 9.40 cents.
At the last closing share price the estimated dividend yield is 1.96%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.86.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 10.7, implying annual growth of 17.6%.
Current consensus DPS estimate is 2.5, implying a prospective dividend yield of 1.6%.
Current consensus EPS estimate suggests the PER is 14.8.

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

IAG    INSURANCE AUSTRALIA GROUP LIMITED

Insurance – Overnight Price: $5.81

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

Looking past the mostly negative FY23 revisions to EPS for insurers, Jarden believes general insurers offer the greatest operating momentum, yield leverage and value appeal.

Even after allowing for a more gradual moderation in inflation and higher reinsurance/catastrophe budgets, the broker expects stronger FY24/25 returns and lifts EPS forecasts by 3.8%/4.0% for Insurance Australia Group.

Overweight retained. Jarden raises the target to $5.80 from $5.50.

This report was published on July 3, 2023.

Target price is $5.80 Current Price is $5.81 Difference: minus $0.01 (current price is over target).
If IAG meets the Jarden target it will return approximately minus 0% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $5.34, suggesting downside of -8.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 16.00 cents and EPS of 20.70 cents.
At the last closing share price the estimated dividend yield is 2.75%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.07.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 25.0, implying annual growth of 77.4%.
Current consensus DPS estimate is 15.6, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 23.2.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 27.00 cents and EPS of 36.50 cents.
At the last closing share price the estimated dividend yield is 4.65%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.92.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 35.3, implying annual growth of 41.2%.
Current consensus DPS estimate is 27.6, implying a prospective dividend yield of 4.8%.
Current consensus EPS estimate suggests the PER is 16.5.

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

IPD    IMPEDIMED LIMITED

Medical Equipment & Devices – Overnight Price: $0.20

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

Wilsons has visited the Stanford Medical Centre, one of the first adopters of ImpediMed's bioimpedance spectroscopy in lymphoedema assessment. In addition to breast cancer-related lymphoedema prevention the facility as expanded to lower limb and thoracic cases.

New territory is also being explored in post-surgical vasculitis. The broker maintains an Overweight rating and 21c target.

This report was published on July 4, 2023.

Target price is $0.21 Current Price is $0.20 Difference: $0.01
If IPD meets the Wilsons target it will return approximately 5% (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 1.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 18.18.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 0.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 22.22.

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

LAU    LINDSAY AUSTRALIA LIMITED

Transportation & Logistics – Overnight Price: $1.25

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

Lindsay Australia has acquired WB Hunter, a rural supply business with seven stores in Victoria and one in NSW, and expects the acquisition will be accretive in the high single digits in FY24, delivering annual EBIT synergies of $500,000-1.0m.

The company has also indicated it expects to deliver FY23 underlying EBITDA at the upper end of its $85-90m guidance range.

Wilsons assesses the acquisition, on some measures, is not cheap yet acknowledges the expectation for earnings accretion and annualised synergies. Overweight rating maintained. Target rises to $1.68 from $1.51.

This report was published on July 4, 2023.

Target price is $1.68 Current Price is $1.25 Difference: $0.435
If LAU meets the Wilsons target it will return approximately 35% (excluding dividends, fees and charges).
Current consensus price target is $1.55, suggesting upside of 24.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 4.90 cents and EPS of 11.80 cents.
At the last closing share price the estimated dividend yield is 3.94%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.55.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 11.4, implying annual growth of 78.4%.
Current consensus DPS estimate is 5.5, implying a prospective dividend yield of 4.4%.
Current consensus EPS estimate suggests the PER is 10.9.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 7.00 cents and EPS of 14.10 cents.
At the last closing share price the estimated dividend yield is 5.62%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.83.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 13.3, implying annual growth of 16.7%.
Current consensus DPS estimate is 6.3, implying a prospective dividend yield of 5.1%.
Current consensus EPS estimate suggests the PER is 9.4.

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

LFG    LIBERTY FINANCIAL GROUP LIMITED

Diversified Financials – Overnight Price: $3.83

Jarden rates ((LFG)) as Neutral (3) –

Jarden observes the operating conditions for the non-bank lenders are challenging and there is a risk that refinancing continues to move away from non-banks as borrowers take advantage of cheaper pricing from the majors.

Liberty Financial has less skew to the competitive mortgage segment while offering an unfranked yield of around 12%. Yet, given its higher PE, Jarden retains a Neutral rating and reduces FY23 and FY24 estimates for EPS by -6% and -12%, respectively.

The target is reduced to $4.00 from $4.10.

This report was published on July 3, 2023.

Target price is $4.00 Current Price is $3.83 Difference: $0.17
If LFG meets the Jarden target it will return approximately 4% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 45.00 cents and EPS of 58.00 cents.
At the last closing share price the estimated dividend yield is 11.75%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.60.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 38.00 cents and EPS of 51.00 cents.
At the last closing share price the estimated dividend yield is 9.92%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.51.

Market Sentiment: 1.0
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: $1.16

Jarden rates ((LLL)) as Buy (1) –

Leo Lithium has commenced mining of direct shipping ore at Goulamina, Mali. First revenue is expected in the December quarter. A total of 185,000t direct shipping ore is to be mined and shipped ahead of the spodumene concentrate which is targeted for mid 2024.

Jarden notes the joint venture is also investigating a secondary export route by thee port of San Pedro to reduce haulage volumes and continues to envisage further upside to the resource and scale of the project, encouraged by the improving grade.

Buy rating retained. Target is $1.43.

This report was published on June 30, 2023.

Target price is $1.43 Current Price is $1.16 Difference: $0.27
If LLL meets the Jarden target it will return approximately 23% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 0.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 193.33.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 0.00 cents and EPS of 1.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 61.05.

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

MPL    MEDIBANK PRIVATE LIMITED

Insurance – Overnight Price: $3.55

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

Across the private health and sector, Jarden envisages scope for more resilient margins into FY24 and prefers Medibank Private because of greater consensus upside risk and value appeal.

With the global interest-rate outlook shifting higher over the June quarter to reflect persistent inflation, the broker observes private health insurers carry less investment exposure than general insurers and makes minor upward adjustments to estimates.

Overweight retained. Target is reduced to $3.70 from $3.80.

This report was published on July 3, 2023.

Target price is $3.70 Current Price is $3.55 Difference: $0.15
If MPL meets the Jarden target it will return approximately 4% (excluding dividends, fees and charges).
Current consensus price target is $3.55, suggesting downside of -0.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 15.20 cents and EPS of 18.50 cents.
At the last closing share price the estimated dividend yield is 4.28%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.19.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.9, implying annual growth of 25.2%.
Current consensus DPS estimate is 14.5, 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 17.60 cents and EPS of 20.70 cents.
At the last closing share price the estimated dividend yield is 4.96%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.15.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.5, implying annual growth of 3.4%.
Current consensus DPS estimate is 15.2, implying a prospective dividend yield of 4.3%.
Current consensus EPS estimate suggests the PER is 19.2.

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

NAN    NANOSONICS LIMITED

Medical Equipment & Devices – Overnight Price: $4.84

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

Wilsons has visited the Nanosonics Indianapolis facility which revealed the logistics capabilities that supported a near tripling of activity levels since the company took the US capital and consumables businesses direct.

The broker believes the company is well-placed to handle Trophon growth through FY24-25, including the Coris launch if approved. Plans are also in hand to expand Indianapolis by FY25. Wilsons retains an Overweight rating and $6 target.

This report was published on July 4, 2023.

Target price is $6.00 Current Price is $4.84 Difference: $1.16
If NAN meets the Wilsons target it will return approximately 24% (excluding dividends, fees and charges).
Current consensus price target is $4.56, suggesting downside of -5.8%(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 5.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 91.32.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 4.6, implying annual growth of 271.0%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 105.2.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of 4.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 98.78.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 6.8, implying annual growth of 47.8%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 71.2.

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

NEU    NEUREN PHARMACEUTICALS LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $12.19

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

Neuren Pharmaceuticals has completed enrolment for its phase II trial of NNZ-2591 in Phelan-McDermid Syndrome.

Wilsons is excited by the announcement as the countdown to the significant first efficacy data has started. Positive initial data would be a re-rating event for the stock in the broker's opinion.

Overweight rating maintained. Target is $18.29.

This report was published on June 30, 2023.

Target price is $18.29 Current Price is $12.19 Difference: $6.1
If NEU meets the Wilsons target it will return approximately 50% (excluding dividends, fees and charges).
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 49.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.58.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of 19.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 61.88.

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

NHF    NIB HOLDINGS LIMITED

Insurance – Overnight Price: $8.69

Jarden rates ((NHF)) as Neutral (3) –

Across the private health and sector, Jarden envisages scope for more resilient margins into FY24 and prefers Medibank Private to nib Holdings because of greater consensus upside risk and value appeal.

With the global interest rate outlook shifting higher over the June quarter to reflect persistent inflation, the broker observes private health insurers carry less investment exposure than general insurers and makes minor upward adjustments to estimates.

Neutral maintained. Target is steady at $8.

This report was published on July 3, 2023.

Target price is $8.00 Current Price is $8.69 Difference: minus $0.69 (current price is over target).
If NHF meets the Jarden target it will return approximately minus 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $7.78, suggesting downside of -10.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 29.00 cents and EPS of 40.70 cents.
At the last closing share price the estimated dividend yield is 3.34%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.35.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 41.4, implying annual growth of 39.9%.
Current consensus DPS estimate is 27.5, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 21.0.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 31.00 cents and EPS of 42.40 cents.
At the last closing share price the estimated dividend yield is 3.57%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 44.6, implying annual growth of 7.7%.
Current consensus DPS estimate is 29.0, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 19.5.

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

NST    NORTHERN STAR RESOURCES LIMITED

Gold & Silver – Overnight Price: $12.72

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

Given recent strength in the gold price and gold shares, Goldman Sachs has initiated coverage on six Australian gold companies, and Northern Star Resources is one of the broker's favourites.

The broker observes industry cost inflation appears to be easing but spies macro support for the gold price, adding roll-offs of hedged positions should boost realised prices. All up, Goldman Sachs expects these factors could add another $300oz rise in average margins out to FY25.

Add to that, rising production as one-off imposts most likely subside (the broker expects Northern Star Resources should be a major beneficiary in this respect) and continuing merger and acquisition speculation (the company is considered an unlikely target) and the broker remains upbeat.

Capital expenditure on longer-date projects could drag on some producers but on balance, prices and production should triumph said the broker. 

The broker appreciates Northern Star Resources' execution and pipeline but expects returns will be longer dated. Neutral rating applied on valuation. Target price is $12.50.

This report was published on July 3, 2023.

Target price is $12.50 Current Price is $12.72 Difference: minus $0.22 (current price is over target).
If NST 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 $13.39, suggesting upside of 5.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 23.80 cents and EPS of 26.60 cents.
At the last closing share price the estimated dividend yield is 1.87%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 47.82.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 27.0, implying annual growth of -27.0%.
Current consensus DPS estimate is 28.0, implying a prospective dividend yield of 2.2%.
Current consensus EPS estimate suggests the PER is 47.1.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 34.50 cents and EPS of 68.60 cents.
At the last closing share price the estimated dividend yield is 2.71%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.54.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 61.7, implying annual growth of 128.5%.
Current consensus DPS estimate is 34.7, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 20.6.

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

PDN    PALADIN ENERGY LIMITED

Uranium – Overnight Price: $0.77

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

The uranium term market is tight and seeing increasing activity, observes Canaccord Genuity, and higher prices are in prospect.

Against this background, the broker highlights the restart of Paladin Energy's Langer Heinrich mine is on schedule (and on budget) for first production in Q1 2024. It's noted the company is feeling confident around current progress and future commissioning.

Management has contracted 18mlb of future supply, which represents 48% of estimated production to FY30, points out the broker, and importantly, Langer Heinrich has over 80% exposure to market pricing.

The Buy rating and $1.15 target are unchanged.

This report was published on June 29, 2023.

Target price is $1.15 Current Price is $0.77 Difference: $0.38
If PDN meets the Canaccord Genuity target it will return approximately 49% (excluding dividends, fees and charges).
Current consensus price target is $1.08, suggesting upside of 40.3%(ex-dividends)
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 0.89 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 86.32.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -3.5, 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:

Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of 1.49 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 51.78.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1.0, 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 77.0.

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

PPM    PEPPER MONEY LIMITED

Business & Consumer Credit – Overnight Price: $1.44

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

Jarden observes the operating conditions for the non-bank lenders are challenging and there is a risk that refinancing continues to move away from non-banks as borrowers take advantage of cheaper pricing from the majors.

The broker's preference is for Pepper Money and an Overweight rating is maintained. The target is reduced to $1.65 from $1.70.

Estimates for FY23 and FY24 are reduced by -6% and -11%, respectively, to reflect lower margins, reduced new mortgage originations and accelerated loan run-offs.

This report was published on July 3, 2023.

Target price is $1.65 Current Price is $1.44 Difference: $0.21
If PPM meets the Jarden target it will return approximately 15% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 9.00 cents and EPS of 26.00 cents.
At the last closing share price the estimated dividend yield is 6.25%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.54.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 9.00 cents and EPS of 25.00 cents.
At the last closing share price the estimated dividend yield is 6.25%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.76.

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

QBE    QBE INSURANCE GROUP LIMITED

Insurance – Overnight Price: $15.84

Jarden rates ((QBE)) as Buy (1) –

Looking past the mostly negative FY23 revisions to EPS for insurers, Jarden believes general insurers offer the greatest operating momentum, yield leverage and value appeal.

Even after allowing for a more gradual moderation in inflation and higher reinsurance/catastrophe budgets, the broker expects stronger 2023 and 2024 returns for QBE Insurance and lifts EPS forecasts by by 2.9% and 7.2%, respectively.

The stock remains the broker's top pick, and a Buy rating is retained. Jarden raises the target to $20.25 from $19.65.

This report was published on July 3, 2023.

Target price is $20.25 Current Price is $15.84 Difference: $4.41
If QBE meets the Jarden target it will return approximately 28% (excluding dividends, fees and charges).
Current consensus price target is $16.38, suggesting upside of 3.4%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 108.52 cents and EPS of 150.14 cents.
At the last closing share price the estimated dividend yield is 6.85%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.55.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 137.1, implying annual growth of N/A.
Current consensus DPS estimate is 108.7, implying a prospective dividend yield of 6.9%.
Current consensus EPS estimate suggests the PER is 11.6.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 135.28 cents and EPS of 188.79 cents.
At the last closing share price the estimated dividend yield is 8.54%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.39.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 165.5, implying annual growth of 20.7%.
Current consensus DPS estimate is 118.0, implying a prospective dividend yield of 7.4%.
Current consensus EPS estimate suggests the PER is 9.6.

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

RMC    RESIMAC GROUP LIMITED

Banks – Overnight Price: $0.94

Jarden rates ((RMC)) as Underweight (4) –

Jarden observes the operating conditions for the non-bank lenders are challenging and there is a risk that refinancing continues to move away from non-banks as borrowers take advantage of cheaper pricing from the majors.

The broker reduces FY23-25 estimates for EPS by -6-12%, to reflect lower margins, reduced new mortgage originations and accelerated loan run-offs.

The broker retains an Underweight rating for Resimac Group, given the business is 97% exposed to a slowing housing market. Target is lowered to $1.00 from $1.15.

This report was published on July 3, 2023.

Target price is $1.00 Current Price is $0.94 Difference: $0.065
If RMC meets the Jarden target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $1.12, suggesting upside of 20.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 7.00 cents and EPS of 17.00 cents.
At the last closing share price the estimated dividend yield is 7.49%.
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 17.6, implying annual growth of -29.7%.
Current consensus DPS estimate is 6.9, implying a prospective dividend yield of 7.4%.
Current consensus EPS estimate suggests the PER is 5.3.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 6.00 cents and EPS of 14.00 cents.
At the last closing share price the estimated dividend yield is 6.42%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.68.

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 6.0%.
Current consensus EPS estimate suggests the PER is 6.4.

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

RRL    REGIS RESOURCES LIMITED

Gold & Silver – Overnight Price: $1.95

Goldman Sachs rates ((RRL)) as Initiation of coverage with Buy (1) –

Given recent strength in the gold price and gold shares, Goldman Sachs has initiated coverage on six Australian gold companies, and Regis Resources is one of the broker's preferred mid caps.

The broker observes industry cost inflation appears to be easing but spies macro support for the gold price, adding roll-offs of hedged positions should boost realised prices. All up, Goldman Sachs expects these factors could add another $300oz rise in average margins out to FY25.

Add to that, rising production as one-off imposts most likely subside and continuing merger and acquisition speculation (the broker doubts Regis Resources will attract a bid given perceived execution risk), and the broker remains upbeat.

Capital expenditure on longer-date projects could drag on some producers but, on balance, prices and production should triumph, says the broker.

Buy rating applied, the broker observing the company is trading at a strong discount to valuation, which does not include the value of the McPhillamys gold project, and offers strong organic growth. Target price is $2.30.

This report was published on July 3, 2023.

Target price is $2.30 Current Price is $1.95 Difference: $0.355
If RRL meets the Goldman Sachs target it will return approximately 18% (excluding dividends, fees and charges).
Current consensus price target is $2.38, suggesting upside of 22.4%(ex-dividends)
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 minus 1.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 102.37.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1.7, implying annual growth of -6.6%.
Current consensus DPS estimate is 1.4, implying a prospective dividend yield of 0.7%.
Current consensus EPS estimate suggests the PER is 114.4.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 0.00 cents and EPS of 9.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.47.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 20.2, implying annual growth of 1088.2%.
Current consensus DPS estimate is 2.8, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 9.6.

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

SDF    STEADFAST GROUP LIMITED

Insurance – Overnight Price: $5.98

Jarden rates ((SDF)) as Neutral (3) –

Looking past the mostly negative FY23 revisions to EPS, Jarden assesses Steadfast Group is leveraged positively to higher cash rates and this drives FY24 upgrades to EPS of 1.9%.

The broker notes commercial premium rate momentum has remained surprisingly strong, although with the stock now trading at a 13% premium to its five-year average PE a Neutral rating is maintained as the valuation appeal is limited. Target rises to $6.05 from $5.80.

This report was published on July 3, 2023.

Target price is $6.05 Current Price is $5.98 Difference: $0.07
If SDF meets the Jarden target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $6.27, suggesting upside of 4.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 15.10 cents and EPS of 24.70 cents.
At the last closing share price the estimated dividend yield is 2.53%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.21.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 25.1, implying annual growth of 40.3%.
Current consensus DPS estimate is 15.3, implying a prospective dividend yield of 2.6%.
Current consensus EPS estimate suggests the PER is 23.8.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 17.70 cents and EPS of 27.70 cents.
At the last closing share price the estimated dividend yield is 2.96%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.59.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 26.9, implying annual growth of 7.2%.
Current consensus DPS estimate is 16.7, implying a prospective dividend yield of 2.8%.
Current consensus EPS estimate suggests the PER is 22.2.

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

SHA    SHAPE AUSTRALIA CORPORATION LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $1.47

Moelis rates ((SHA)) as Buy (1) –

After Shape Australia last week issued a trading update, Moelis feels the company is well-placed to emerge stronger from subdued covid trading and benefit from the weaker financial positions of competitors.

FY23 revenue guidance of around $850m beat the broker's forecast for $827.8m, while earnings (EBITDA) guidance was also a 5% beat. Activity levels and margins are progressively recovering towards pre-covid levels.

A material jump in the project pipeline should be supportive of the the company's FY24 performance, in the analysts' view.

The Buy rating is maintained, while the target slips to $2.01 from $2.05.

This report was published on June 30, 2023.

Target price is $2.01 Current Price is $1.47 Difference: $0.545
If SHA meets the Moelis target it will return approximately 37% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 9.70 cents and EPS of 11.80 cents.
At the last closing share price the estimated dividend yield is 6.62%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.42.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 13.20 cents and EPS of 16.00 cents.
At the last closing share price the estimated dividend yield is 9.01%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.16.

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

SPK    SPARK NEW ZEALAND LIMITED

Telecommunication – Overnight Price: $4.71

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

Goldman Sachs updates Australian and New Zealand telecom sector earnings.

The broker observes steady improvement in fixed wireless and substantially higher data consumption than the broker had forecast, citing ACCC December 2022 data; relatively high FWA subscription downloads relative to NBN and postpaid mobile, and industry return; the relaunch of Telstra's fixed wireless product with an updated modem with unchanged pricing; and continuing declines in Telstra's NBN subscription, with fixed wireless proving a big margin driver for the industry.

Goldman Sachs says pricing compression continues in fixed enterprise, particularly for Telstra and TPG Telecom, but expects hyperscale data centre investments for artificial intelligence will boost demand for fibre capacity.

Pressure on operating expenditure is likely to continue given inflation and rising interest rates, says the broker, observing Spark New Zealand is the least exposed to rate rises. EPS forecasts are steady in FY23; ease -1% in FY24; and -1% in FY25.

Sell rating and $4.90 target price.

This report was published on July 3, 2023.

Target price is $4.90 Current Price is $4.71 Difference: $0.19
If SPK meets the Goldman Sachs target it will return approximately 4% (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 24.73 cents and EPS of 21.80 cents.
At the last closing share price the estimated dividend yield is 5.25%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.61.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 24.73 cents and EPS of 22.99 cents.
At the last closing share price the estimated dividend yield is 5.25%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.49.

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

STX    STRIKE ENERGY LIMITED

NatGas – Overnight Price: $0.43

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

The timing of maiden gas production from Walyering has been affected by inclement weather along with delays in the delivery of key materials and services.

Strike Energy expects commissioning to occur in the current quarter and will look to mitigate the impact of delays while providing further disclosure and accuracy on first gas once the construction has reached mechanical completion.

Wilsons notes the delay does not affect the timing of the South Erregulla gas development as the processing facility for this will consist of modular gas plants. The broker retains an Overweight rating and $0.52 target.

This report was published on July 4, 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 25.6%(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 -0.8, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY24:

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 0.2, 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 215.0.

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

SUN    SUNCORP GROUP LIMITED

Insurance – Overnight Price: $13.51

Jarden rates ((SUN)) as Buy (1) –

Looking past the mostly negative FY23 revisions to EPS for insurers, Jarden believes general insurers offer the greatest operating momentum, yield leverage and value appeal.

Even after allowing for a more gradual moderation in inflation and higher reinsurance/catastrophe budgets, the broker expects a stronger FY24/25 underlying insurance trading ratio outlook and lifts EPS forecasts by 5.7%/4.9% for Suncorp Group.

Buy rating retained. Jarden raises the target to $14.70 from $14.00.

This report was published on July 3, 2023.

Target price is $14.70 Current Price is $13.51 Difference: $1.19
If SUN meets the Jarden target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $14.57, suggesting upside of 8.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 75.00 cents and EPS of 98.10 cents.
At the last closing share price the estimated dividend yield is 5.55%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.77.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 97.6, implying annual growth of 81.4%.
Current consensus DPS estimate is 75.4, implying a prospective dividend yield of 5.6%.
Current consensus EPS estimate suggests the PER is 13.8.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 93.70 cents and EPS of 103.70 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 13.03.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 100.3, implying annual growth of 2.8%.
Current consensus DPS estimate is 76.6, implying a prospective dividend yield of 5.7%.
Current consensus EPS estimate suggests the PER is 13.4.

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

TLS    TELSTRA GROUP LIMITED

Telecommunication – Overnight Price: $4.36

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

Goldman Sachs updates Australian and New Zealand telecom sector earnings.

The broker observes steady improvement in fixed wireless and substantially higher data consumption than the broker had forecast, citing ACCC December 2022 data; relatively high FWA subscription downloads relative to NBN and postpaid mobile, and industry return; the relaunch of Telstra's fixed wireless product with an updated modem with unchanged pricing; and continuing declines in Telstra's NBN subscription, with fixed wireless proving a big margin driver for the industry.

Meanwhile, Goldman Sachs syas pricing compression continues in fixed enterprise, particularly for Telstra and TPG Telecom , but expects hyperscale data centre investments to support artificial intelligence will boost demand for fibre capacity, which should include Telstra's intercapital fibre upgrade.

Pressure on operating expenditure is likely to continue given inflation and rising interest rates, says the broker, jeopardising Telstra's $500m target. The broker spies wage risks but expects this will encourage higher prices and a more rational market. 

Telstra is the broker's favourite industy pick, the broker citing a positive free-cash-flow and dividend profile, lower earnings risk and valuatioin support. EPS forecasts ease 1% in FY23; -2% in FY24; and -1% in FY25.

Buy rating retained. Target price inches up to $4.80 from FNArena's last entry of $4.70 in May.

This report was published on July 3, 2023.

Target price is $4.80 Current Price is $4.36 Difference: $0.44
If TLS meets the Goldman Sachs target it will return approximately 10% (excluding dividends, fees and charges).
Current consensus price target is $4.68, suggesting upside of 7.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 17.00 cents and EPS of 16.40 cents.
At the last closing share price the estimated dividend yield is 3.90%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.59.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.0, implying annual growth of 11.4%.
Current consensus DPS estimate is 17.0, implying a prospective dividend yield of 3.9%.
Current consensus EPS estimate suggests the PER is 27.3.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 18.00 cents and EPS of 18.40 cents.
At the last closing share price the estimated dividend yield is 4.13%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.70.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.3, implying annual growth of 14.4%.
Current consensus DPS estimate is 17.9, implying a prospective dividend yield of 4.1%.
Current consensus EPS estimate suggests the PER is 23.8.

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

TLX    TELIX PHARMACEUTICALS LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $10.82

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

Wilsons attended the recent urology showcase in New York, catching up with key developments for both PET/CT diagnostic and radioligand therapy initiatives.

The broker believes it is share thesis for Telix Pharmaceuticals' Illuccix has been confirmed and possibly augmented through clinical differentiation.

Overweight rating and $13 target maintained.

This report was published on July 4, 2023.

Target price is $13.00 Current Price is $10.82 Difference: $2.18
If TLX meets the Wilsons target it will return approximately 20% (excluding dividends, fees and charges).
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 11.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 93.28.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of 28.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 37.83.

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

TPG    TPG TELECOM LIMITED

Telecommunication – Overnight Price: $4.94

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

Goldman Sachs updates Australian and New Zealand telecom sector earnings.

The broker observes steady improvement in fixed wireless and substantially higher data consumption than the broker had forecast, citing ACCC December 2022 data; relatively high FWA subscription downloads relative to NBN and postpaid mobile, and industry return; the relaunch of Telstra's fixed wireless product with an updated modem with unchanged pricing; and continuing declines in Telstra's NBN subscription, with fixed wireless proving a big margin driver for the industry.

Goldman Sachs says pricing compression continues in fixed enterprise, particularly for Telstra and TPG Telecom, but expects hyperscale data centre investments for artificial intelligence will boost demand for fibre capacity.

Pressure on operating expenditure is likely to continue given inflation and rising interest rates, says the broker, observing TPG is the most exposed on the rate front, and that press reports speculate the company is refinancing to diversify and extend tenor.

EPS forecasts fall -9% in FY23; -9% in FY24; and -7% in FY25. 

Neutral rating retained and target price edges up to $5.50 from FNArena's last entry of $5.30. 

This report was published on July 3, 2023.

Target price is $5.50 Current Price is $4.94 Difference: $0.56
If TPG meets the Goldman Sachs target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $5.93, suggesting upside of 20.0%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 18.00 cents and EPS of 12.80 cents.
At the last closing share price the estimated dividend yield is 3.64%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 38.59.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 14.9, implying annual growth of -46.0%.
Current consensus DPS estimate is 17.7, implying a prospective dividend yield of 3.6%.
Current consensus EPS estimate suggests the PER is 33.2.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 18.00 cents and EPS of 15.70 cents.
At the last closing share price the estimated dividend yield is 3.64%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.46.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.8, implying annual growth of 26.2%.
Current consensus DPS estimate is 19.3, implying a prospective dividend yield of 3.9%.
Current consensus EPS estimate suggests the PER is 26.3.

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

UMG    UNITED MALT GROUP LIMITED

Agriculture – Overnight Price: $4.78

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

Malteries Soufflet now has a scheme implementation deed with United Malt to acquire the stock for $5 a share.

Wilsons believes this is an encouraging outcome for shareholders, given the company downgraded first half guidance after the bid was announced and there was, as a result, a risk that Malteries Soufflet could lower its price or even abandon the offer.

The target is $4.45. Market Weight.

This report was published on July 3, 2023.

Target price is $4.45 Current Price is $4.78 Difference: minus $0.33 (current price is over target).
If UMG meets the Wilsons target it will return approximately minus 7% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $4.94, suggesting upside of 3.3%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of 8.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 57.59.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 7.5, implying annual growth of 93.3%.
Current consensus DPS estimate is 2.7, implying a prospective dividend yield of 0.6%.
Current consensus EPS estimate suggests the PER is 63.7.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 4.00 cents and EPS of 14.00 cents.
At the last closing share price the estimated dividend yield is 0.84%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 34.14.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 19.5, implying annual growth of 160.0%.
Current consensus DPS estimate is 9.4, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 24.5.

Market Sentiment: 0.0
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.

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