Australian Broker Call *Extra* Edition – Jul 11, 2023

This story features ALS LIMITED, and other companies. For more info SHARE ANALYSIS: ALQ

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)

ALQ   ASX   CAJ   CAR   CGC   CPU   EVO   HUB   IEL   MFG   MVF   NWL   PNI   PPS   PXA   SDR   WOW  

ALQ    ALS LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $10.60

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

Jarden envisages ongoing risks to the earnings outlook when ALS Ltd delivers its usual maiden guidance at the AGM on July 26.

There was a slowdown in geochemistry sampling flow volumes throughout the fourth quarter of FY23 and there is ongoing margin/revenue pressure at Nuvisan which will weigh on life sciences.

The broker takes a cautious approach to the FY24 outlook and retains an Underweight rating and $11.35 target.

This report was published on July 5, 2023.

Target price is $11.35 Current Price is $10.60 Difference: $0.75
If ALQ meets the Jarden target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $11.96, suggesting upside of 12.6%(ex-dividends)
The company's fiscal year ends in March.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 40.80 cents and EPS of 63.70 cents.
At the last closing share price the estimated dividend yield is 3.85%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.64.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 65.1, implying annual growth of 12.9%.
Current consensus DPS estimate is 38.5, implying a prospective dividend yield of 3.6%.
Current consensus EPS estimate suggests the PER is 16.3.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 43.50 cents and EPS of 68.00 cents.
At the last closing share price the estimated dividend yield is 4.10%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.59.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 68.5, implying annual growth of 5.2%.
Current consensus DPS estimate is 41.0, implying a prospective dividend yield of 3.9%.
Current consensus EPS estimate suggests the PER is 15.5.

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

ASX    ASX LIMITED

Wealth Management & Investments – Overnight Price: $60.60

Jarden rates ((ASX)) as Neutral (3) –

Despite a supportive equity market over June, Jarden notes ASX activity levels were soft with daily average cash equity turnover and capital raisings down -15% and -80%, respectively.

Although this may represent a cyclical low, the broker believes elevated uncertainty and a tougher economic backdrop are likely to persist. In addition, the company is still to finalise its Chess replacement solution.

Neutral maintained. Target is reduced to $63.50 from $64.85.

This report was published on July 6, 2023.

Target price is $63.50 Current Price is $60.60 Difference: $2.9
If ASX meets the Jarden target it will return approximately 5% (excluding dividends, fees and charges).
Current consensus price target is $65.02, suggesting upside of 7.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 231.30 cents and EPS of 257.00 cents.
At the last closing share price the estimated dividend yield is 3.82%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.58.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 244.1, implying annual growth of -7.1%.
Current consensus DPS estimate is 220.2, implying a prospective dividend yield of 3.6%.
Current consensus EPS estimate suggests the PER is 24.8.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 225.90 cents and EPS of 265.80 cents.
At the last closing share price the estimated dividend yield is 3.73%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.80.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 259.9, implying annual growth of 6.5%.
Current consensus DPS estimate is 226.8, implying a prospective dividend yield of 3.8%.
Current consensus EPS estimate suggests the PER is 23.3.

Market Sentiment: 0.1
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: $0.26

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

In its recent market update, Capitol Health expects FY23 operating EBITDA to be within the range of $39.3-40.0m. Costs are greater than Goldman Sachs had anticipated while guidance implies an EBITDA margin of 19%.

The broker continues to believe FY23 will represent the bottom in margins and forecasts a more elongated recovery, with a medium-term margin target of 23-24% reached by FY27.

The business is considered well-positioned in a structurally attractive industry and Goldman Sachs reiterates a Buy rating, reducing the target to $0.31 from $0.33.

This report was published on July 10, 2023.

Target price is $0.31 Current Price is $0.26 Difference: $0.055
If CAJ meets the Goldman Sachs target it will return approximately 22% (excluding dividends, fees and charges).
Current consensus price target is $0.34, suggesting upside of 28.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 EPS of 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.50.

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 3.5%.
Current consensus EPS estimate suggests the PER is 28.9.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 EPS of 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.50.

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 20.0.

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

CAR    CARSALES.COM LIMITED

Automobiles & Components – Overnight Price: $23.22

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

Jarden is concerned about the macro economic impact on the motor vehicle market although acknowledges the data continues to defy expectations.

Hence, in the short term, earnings from Carsales are likely to surprise to the upside, although the valuation is considered stretched compared with global and domestic peers.

Jarden accepts it may be underestimating pricing power, noting private sales advertising expenditure as a percentage of the average car sales price is just 0.5-1.7%.

Underweight rating and $21.00 target maintained.

This report was published on July 5, 2023.

Target price is $21.00 Current Price is $23.22 Difference: minus $2.22 (current price is over target).
If CAR meets the Jarden target it will return approximately minus 10% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $25.08, suggesting upside of 6.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 54.80 cents and EPS of 71.60 cents.
At the last closing share price the estimated dividend yield is 2.36%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 32.43.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 75.2, implying annual growth of 33.1%.
Current consensus DPS estimate is 59.5, implying a prospective dividend yield of 2.5%.
Current consensus EPS estimate suggests the PER is 31.2.

Forecast for FY24:

Jarden forecasts a full year FY24 EPS of 79.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.10.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 86.4, implying annual growth of 14.9%.
Current consensus DPS estimate is 66.1, implying a prospective dividend yield of 2.8%.
Current consensus EPS estimate suggests the PER is 27.2.

Market Sentiment: 0.7
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: $3.28

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

Costa Group has received a non-binding offer of $3.50 a share from Paine Schwartz Partners, following the latter building a 14% stake in 2022.

Jarden observes the strategic rationale appears strong as the acquirer would obtain a leading global produce operator with exposure to high-growth China and African markets, as well as significant landholdings.

The broker retains its forecasts to reflect the recent volatility in earnings and a more conservative approach to valuation. Overweight rating retained. Target is $2.90.

This report was published on July 5, 2023.

Target price is $2.90 Current Price is $3.28 Difference: minus $0.38 (current price is over target).
If CGC meets the Jarden target it will return approximately minus 12% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $3.22, suggesting downside of -2.0%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY23:

Jarden forecasts a full year FY23 EPS of 17.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.85.

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 24.3.

Forecast for FY24:

Jarden forecasts a full year FY24 EPS of 14.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.43.

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

CPU    COMPUTERSHARE LIMITED

Diversified Financials – Overnight Price: $23.13

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

For Computershare, Jarden believes a stronger margin income outlook should support medium-term earnings despite the risk of transaction revenue remaining softer for longer.

Moreover, a potential sale of the US mortgage servicing business, alongside around $2bn in current acquisition capacity, could boost capacity or bring forward capital management into the first half of FY24.

Overweight maintained. Target rises to $25.80 from $25.10.

This report was published on July 5, 2023.

Target price is $25.80 Current Price is $23.13 Difference: $2.67
If CPU meets the Jarden target it will return approximately 12% (excluding dividends, fees and charges).
Current consensus price target is $25.43, suggesting upside of 9.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 108.85 cents and EPS of 161.49 cents.
At the last closing share price the estimated dividend yield is 4.71%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.32.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 156.5, implying annual growth of N/A.
Current consensus DPS estimate is 117.2, implying a prospective dividend yield of 5.0%.
Current consensus EPS estimate suggests the PER is 14.9.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 119.70 cents and EPS of 180.07 cents.
At the last closing share price the estimated dividend yield is 5.18%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.84.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 181.2, implying annual growth of 15.8%.
Current consensus DPS estimate is 131.8, implying a prospective dividend yield of 5.7%.
Current consensus EPS estimate suggests the PER is 12.8.

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

EVO    EMBARK EARLY EDUCATION LIMITED

Education & Tuition – Overnight Price: $0.61

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

With Embark Early Education now re-listed on ASX and re-domiciled in Australia, and amid changes to the child care subsidy, Petra Capital reviews the investment case.

An increase in the subsidy is expected to support already high occupancy levels and therefore a return to dividends is considered likely.

The broker calculates the vast majority of the company's 24 centres are in suburbs where the average household taxable income is within the $90-180,000 range and, hence, the company is seen as well-placed in a deteriorating economy.

Buy rating maintained. Target edges down to $0.90 from $1.00.

This report was published on July 10, 2023.

Target price is $0.90 Current Price is $0.61 Difference: $0.29
If EVO meets the Petra Capital target it will return approximately 48% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY23:

Petra Capital forecasts a full year FY23 dividend of 2.75 cents and EPS of 3.85 cents.
At the last closing share price the estimated dividend yield is 4.51%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.85.

Forecast for FY24:

Petra Capital forecasts a full year FY24 dividend of 3.21 cents and EPS of 4.31 cents.
At the last closing share price the estimated dividend yield is 5.26%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.17.

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

HUB    HUB24 LIMITED

Wealth Management & Investments – Overnight Price: $23.91

Wilsons rates ((HUB)) as Reinstate Coverage with Overweight (1) –

Wilsons reinstates coverage of specialist platform providers, with an Overweight rating and $29.25 target for Hub24, and has a constructive view of the sector based on its assessment of the competitive landscape and market structure.

The broker highlights the limited administration fee compression risks over the medium term, believing consensus is overly bearish, while the mix of funds under administration among participants has offset the recent "winter" in flows.

That said, with a higher exposure to superannuation than its platform peers, the company has mitigated some of the recent slowdown in flows.

This report was published on July 10, 2023.

Target price is $29.25 Current Price is $23.91 Difference: $5.34
If HUB meets the Wilsons target it will return approximately 22% (excluding dividends, fees and charges).
Current consensus price target is $32.47, suggesting upside of 33.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 30.00 cents and EPS of 66.60 cents.
At the last closing share price the estimated dividend yield is 1.25%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 35.90.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 67.1, implying annual growth of 232.5%.
Current consensus DPS estimate is 30.0, implying a prospective dividend yield of 1.2%.
Current consensus EPS estimate suggests the PER is 36.3.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 38.00 cents and EPS of 80.60 cents.
At the last closing share price the estimated dividend yield is 1.59%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.67.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 81.0, implying annual growth of 20.7%.
Current consensus DPS estimate is 36.3, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 30.0.

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

IEL    IDP EDUCATION LIMITED

Education & Tuition – Overnight Price: $21.17

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

Goldman Sachs highlights the investor debate that is occurring around the impact of changing market share dynamics regarding the IELTS volume outlook.

This comes in the wake of the Canadian government's announcement that English testing for the student direct stream visa will be opened up to competition from August.

Based on the broker's analysis of the size of the English testing market and the industry growth rate as well as market share, IELTS market growth is assumed at 7% per annum with a -30% share loss of Canada's testing volumes over FY24-25.

Goldman Sachs also concludes that the focus should shift back to student placement as the competition impact becomes clearer.

Amid greater confidence regarding the potential outcomes for IELTS volumes and a relatively minor impact on earnings, the broker reiterates a Buy rating for IDP Education and lowers the target to $28.90 from $30.60.

This report was published on July 9, 2023.

Target price is $28.90 Current Price is $21.17 Difference: $7.73
If IEL meets the Goldman Sachs target it will return approximately 37% (excluding dividends, fees and charges).
Current consensus price target is $26.83, suggesting upside of 24.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 38.00 cents and EPS of 54.00 cents.
At the last closing share price the estimated dividend yield is 1.79%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 39.20.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 55.0, implying annual growth of 49.2%.
Current consensus DPS estimate is 39.9, implying a prospective dividend yield of 1.9%.
Current consensus EPS estimate suggests the PER is 39.2.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 44.50 cents and EPS of 64.00 cents.
At the last closing share price the estimated dividend yield is 2.10%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 33.08.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 64.3, implying annual growth of 16.9%.
Current consensus DPS estimate is 45.8, implying a prospective dividend yield of 2.1%.
Current consensus EPS estimate suggests the PER is 33.5.

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

MFG    MAGELLAN FINANCIAL GROUP LIMITED

Wealth Management & Investments – Overnight Price: $8.38

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

While there has been some improvement in Magellan Financial's flagship fund performance, Jarden observes heightened outflows continue. Institutional outflows continue to disappoint and retail outflows are more than 25% of assets under management.

The broker is therefore cautious over the near term and retains an Underweight rating. Target is reduced to $8.35 from $8.50.

This report was published on July 6, 2023.

Target price is $8.35 Current Price is $8.38 Difference: minus $0.03 (current price is over target).
If MFG 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 $8.84, suggesting upside of 5.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 84.90 cents and EPS of 95.90 cents.
At the last closing share price the estimated dividend yield is 10.13%.
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 98.5, implying annual growth of -52.4%.
Current consensus DPS estimate is 82.4, implying a prospective dividend yield of 9.8%.
Current consensus EPS estimate suggests the PER is 8.5.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 56.80 cents and EPS of 77.50 cents.
At the last closing share price the estimated dividend yield is 6.78%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.81.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 73.7, implying annual growth of -25.2%.
Current consensus DPS estimate is 54.1, implying a prospective dividend yield of 6.5%.
Current consensus EPS estimate suggests the PER is 11.4.

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

MVF    MONASH IVF GROUP LIMITED

Healthcare services – Overnight Price: $1.14

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

Medicare data have signalled more than 5000 stimulated cycles occurred in Australia in May and Wilsons calculates, in Monash IVF's jurisdictions, this equates to 5.8% growth in the second half and reverses the contractions in the previous two reporting periods.

The broker is increasingly confident the IVF industry volumes have re-based for growth. Overweight maintained. Target is $1.35.

This report was published on July 10, 2023.

Target price is $1.35 Current Price is $1.14 Difference: $0.215
If MVF meets the Wilsons target it will return approximately 19% (excluding dividends, fees and charges).
Current consensus price target is $1.37, suggesting upside of 20.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 4.60 cents and EPS of 6.60 cents.
At the last closing share price the estimated dividend yield is 4.05%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.20.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 6.2, implying annual growth of 31.4%.
Current consensus DPS estimate is 4.5, implying a prospective dividend yield of 3.9%.
Current consensus EPS estimate suggests the PER is 18.4.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 5.30 cents and EPS of 7.50 cents.
At the last closing share price the estimated dividend yield is 4.67%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.13.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 7.3, implying annual growth of 17.7%.
Current consensus DPS estimate is 5.1, implying a prospective dividend yield of 4.5%.
Current consensus EPS estimate suggests the PER is 15.6.

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

NWL    NETWEALTH GROUP LIMITED

Wealth Management & Investments – Overnight Price: $13.34

Wilsons rates ((NWL)) as Reinstate Coverage with Overweight (1) –

Wilsons reinstates coverage of specialist platform providers, with an Overweight rating and $16.37 target for Netwealth Group, and has a constructive view of the sector based on its assessment of the competitive landscape and market structure.

The broker highlights the limited administration fee compression risks over the medium term, believing consensus is overly bearish, while the mix of funds under administration among participants has offset the recent "winter" in flows.

Wilsons believes Netwealth Group's efficiency and profitability metrics are "first-class" and there is room for upside as margin expansion occurs.

This report was published on July 10, 2023.

Target price is $16.37 Current Price is $13.34 Difference: $3.03
If NWL meets the Wilsons target it will return approximately 23% (excluding dividends, fees and charges).
Current consensus price target is $14.73, suggesting upside of 9.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 23.50 cents and EPS of 27.20 cents.
At the last closing share price the estimated dividend yield is 1.76%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 49.04.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 27.9, implying annual growth of 22.5%.
Current consensus DPS estimate is 23.6, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 48.4.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 30.80 cents and EPS of 36.20 cents.
At the last closing share price the estimated dividend yield is 2.31%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 36.85.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 36.4, implying annual growth of 30.5%.
Current consensus DPS estimate is 30.8, implying a prospective dividend yield of 2.3%.
Current consensus EPS estimate suggests the PER is 37.1.

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

PNI    PINNACLE INVESTMENT MANAGEMENT GROUP LIMITED

Wealth Management & Investments – Overnight Price: $9.20

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

Pinnacle Investment Management has advised its gross affiliate performance fee should be $54.8m in the second half, 37% ahead of Wilsons' estimates. The broker suspects some of this "beat" on estimates came from Coolabah.

Combined with net inflows of $1.9bn and market movements of $4.1bn in the third quarter this highlights the benefits of a diversified portfolio of affiliates, in the broker's opinion.

Going forward inflows remain uncertain as to timing although equity markets are noted to be improving. The broker retains an Overweight rating and reduces the target to $11.70 from $12.20.

This report was published on July 7, 2023.

Target price is $11.70 Current Price is $9.20 Difference: $2.5
If PNI meets the Wilsons target it will return approximately 27% (excluding dividends, fees and charges).
Current consensus price target is $9.96, suggesting upside of 6.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 30.30 cents and EPS of 37.80 cents.
At the last closing share price the estimated dividend yield is 3.29%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.34.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 38.3, implying annual growth of -4.7%.
Current consensus DPS estimate is 33.8, implying a prospective dividend yield of 3.6%.
Current consensus EPS estimate suggests the PER is 24.5.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 34.40 cents and EPS of 43.00 cents.
At the last closing share price the estimated dividend yield is 3.74%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.40.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 42.2, implying annual growth of 10.2%.
Current consensus DPS estimate is 35.5, implying a prospective dividend yield of 3.8%.
Current consensus EPS estimate suggests the PER is 22.2.

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

PPS    PRAEMIUM LIMITED

Wealth Management & Investments – Overnight Price: $0.59

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

Along with a return to the specialist platform sector, Wilsons initiates coverage on Praemium with an Overweight rating and $0.79.

The broker envisages the earnings trajectory will improve following the sale of the international business and there are numerous levers for growth. 

The broker expects the recent "winter" in flows will subside with adviser migrations accelerating in addition to new business wins.

The shares are considered attractively priced at current levels and Wilsons explains the company only needs to participate, rather than catch up or overcome peers, in order to generate significant returns.

This report was published on July 10, 2023.

Target price is $0.79 Current Price is $0.59 Difference: $0.195
If PPS meets the Wilsons target it will return approximately 33% (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 2.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.33.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of 2.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.04.

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

PXA    PEXA GROUP LIMITED

Real Estate – Overnight Price: $12.54

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

Jarden is hesitant regarding the volume outlook over the short term, given a higher interest-rate scenario, although acknowledges settlement data have continued to show signs of improvement, with NSW volumes rising for the second consecutive month.

Nevertheless, the broker retains an Underweight rating, reducing the target to $12.25 from $12.50, ahead of the FY23 results.

Estimates for EPS in FY23 and FY24 are reduced by -1% and -3%, respectively, to reflect changes to volume growth and market share estimates.

This report was published on July 5, 2023.

Target price is $12.25 Current Price is $12.54 Difference: minus $0.29 (current price is over target).
If PXA meets the Jarden target it will return approximately minus 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $16.02, suggesting upside of 26.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 0.00 cents and EPS of 22.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 54.76.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 25.6, implying annual growth of 107.8%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 49.5.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 0.00 cents and EPS of 33.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 37.66.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 33.5, implying annual growth of 30.9%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 37.9.

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

SDR    SITEMINDER LIMITED

Travel, Leisure & Tourism – Overnight Price: $3.06

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

SiteMinder has begun the new financial year by "pulling the price lever", Wilsons observes, with a 10-12% increase in base and Plus platforms while Little Hotelier is expected to follow suit shortly.

Wilsons increases average subscription MRR per property growth assumptions to 5-6% over FY24-25.

As management is increasingly intent on leveraging the company's data accumulation and creating advanced business intelligence, the broker envisages subscription price increases of 2-3% per annum.

Overweight maintained. Target edges down to $4.47 from $4.53.

This report was published on July 7, 2023.

Target price is $4.47 Current Price is $3.06 Difference: $1.41
If SDR meets the Wilsons target it will return approximately 46% (excluding dividends, fees and charges).
Current consensus price target is $4.91, suggesting upside of 60.8%(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 minus 15.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 20.13.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -14.9, implying annual growth of N/A.
Current consensus DPS estimate is 1.5, implying a prospective dividend yield of 0.5%.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 7.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 41.35.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -8.6, 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: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

WOW    WOOLWORTHS GROUP LIMITED

Food, Beverages & Tobacco – Overnight Price: $38.42

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

After touring the Melbourne South Regional automated distribution centre, Jarden is impressed with the benefits to productivity, reliability and efficiency.

Moreover, in contrast to competitor Coles Group ((COL)), much of the savings have begun to flow through already, with the -$40-50m of expected annual savings likely embedded and the next opportunity being the two Moorebank facilities in 2024/25.

Woolworths remains the broker's preferred sector exposure and an Overweight rating and $41.10 target are maintained.

This report was published on July 5, 2023.

Target price is $41.10 Current Price is $38.42 Difference: $2.68
If WOW meets the Jarden target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $36.73, suggesting downside of -5.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 117.00 cents and EPS of 140.50 cents.
At the last closing share price the estimated dividend yield is 3.05%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.35.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 136.9, implying annual growth of 8.1%.
Current consensus DPS estimate is 103.0, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 28.2.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 131.00 cents and EPS of 153.80 cents.
At the last closing share price the estimated dividend yield is 3.41%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.98.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 148.2, implying annual growth of 8.3%.
Current consensus DPS estimate is 110.6, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 26.1.

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.

Click to view our Glossary of Financial Terms