Australian Broker Call *Extra* Edition – Jul 31, 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)

AKE   ALQ   BPT   BXB   CTD   CWY   CXO   EVS   FMG   GDF   MAD   MP1   MQG   NXS   PME (2)   QAN   QOR   QUB   RIO   SFR   SOM   WOR  

AKE    ALLKEM LIMITED

New Battery Elements – Overnight Price: $15.20

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

Allkem reported a record quarter for lithium carbonate production at Olaroz although sales volumes were below expectations, Goldman Sachs points out, partially because of the timing of shipments.

Olaroz stage 2 achieved first production in mid-July while at James Bay the last approval process was underway when a state of emergency was declared in relation to forest fires in the territory. Once permits are secured construction will commence and the company will update guidance for first production.

The proposed merger with Livent continues to progress, meanwhile, with completion targeted for the end of 2023. Goldman Sachs retains a Buy rating and unchanged target of $17.10.

This report was published on July 27, 2023.

Target price is $17.10 Current Price is $15.20 Difference: $1.9
If AKE meets the Goldman Sachs target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $17.93, suggesting upside of 20.0%(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 68.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.25.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 73.3, implying annual growth of 3.0%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 20.4.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 0.00 cents and EPS of 75.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.08.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 122.9, implying annual growth of 67.7%.
Current consensus DPS estimate is 1.7, implying a prospective dividend yield of 0.1%.
Current consensus EPS estimate suggests the PER is 12.2.

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

ALQ    ALS LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $11.58

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

Goldman Sachs updates estimates for ALS Ltd to factor in first half underlying net profit guidance of $150-155m, provided at the AGM.

Overall, FY24 EPS estimates are downgraded by -3% and FY25 by -2%. The target is reduced to $14.10 from $14.20 while the Buy rating is maintained.

This report was published on July 26, 2023.

Target price is $14.10 Current Price is $11.58 Difference: $2.52
If ALQ meets the Goldman Sachs target it will return approximately 22% (excluding dividends, fees and charges).
Current consensus price target is $11.76, suggesting upside of 0.9%(ex-dividends)
The company's fiscal year ends in March.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 42.00 cents and EPS of 66.00 cents.
At the last closing share price the estimated dividend yield is 3.63%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.55.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 63.7, implying annual growth of 10.5%.
Current consensus DPS estimate is 37.7, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 18.3.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 44.00 cents and EPS of 67.00 cents.
At the last closing share price the estimated dividend yield is 3.80%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.28.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 67.4, implying annual growth of 5.8%.
Current consensus DPS estimate is 40.4, implying a prospective dividend yield of 3.5%.
Current consensus EPS estimate suggests the PER is 17.3.

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

BPT    BEACH ENERGY LIMITED

Crude Oil – Overnight Price: $1.61

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

Beach Energy reported strong sales revenue and production in the June quarter. Sales revenue was 14% ahead of Wilsons' estimates, supported by higher-than-expected volumes of 5.7 mmboe.

Production was up 12% quarter on quarter and in line with the broker's estimates. Measures have been taken to expedite the Waitsia stage 2 development by increasing accommodation and extending shifts.

Overweight rating maintained. Target is $2.01.

This report was published on July 27, 2023.

Target price is $2.01 Current Price is $1.61 Difference: $0.395
If BPT meets the Wilsons target it will return approximately 24% (excluding dividends, fees and charges).
Current consensus price target is $1.92, suggesting upside of 18.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 4.00 cents and EPS of 17.10 cents.
At the last closing share price the estimated dividend yield is 2.48%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.44.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.6, implying annual growth of -24.4%.
Current consensus DPS estimate is 4.3, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 9.8.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 5.00 cents and EPS of 22.30 cents.
At the last closing share price the estimated dividend yield is 3.10%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.24.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 21.4, implying annual growth of 28.9%.
Current consensus DPS estimate is 14.8, implying a prospective dividend yield of 9.1%.
Current consensus EPS estimate suggests the PER is 7.6.

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

BXB    BRAMBLES LIMITED

Transportation & Logistics – Overnight Price: $13.99

Jarden rates ((BXB)) as Neutral (3) –

Jarden reviews the outlook for companies within its transport and waste coverage following a rapid run up in interest rates both locally and globally. Hence, net interest expense is likely to continue building into FY24.

Brambles is well-positioned but still likely to be affected by a slowdown in the rate of revenue and earnings growth, having been a beneficiary of the pandemic period. Neutral maintained. Target rises to $14.30 from $13.85.

This report was published on July 26, 2023.

Target price is $14.30 Current Price is $13.99 Difference: $0.31
If BXB meets the Jarden target it will return approximately 2% (excluding dividends, fees and charges).
Current consensus price target is $14.64, suggesting upside of 4.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 51.64 cents and EPS of 71.88 cents.
At the last closing share price the estimated dividend yield is 3.69%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.46.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 76.5, implying annual growth of N/A.
Current consensus DPS estimate is 40.1, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 18.4.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 70.39 cents and EPS of 78.72 cents.
At the last closing share price the estimated dividend yield is 5.03%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.77.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 85.8, implying annual growth of 12.2%.
Current consensus DPS estimate is 46.5, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 16.4.

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

CTD    CORPORATE TRAVEL MANAGEMENT LIMITED

Travel, Leisure & Tourism – Overnight Price: $20.92

Jarden rates ((CTD)) as Buy (1) –

Corporate Travel Management posted a strong close to FY23, clocking $3bn in client wins for the year and Jarden expects momentum will likely extend into FY24, observing a strong exit run rate and the return on investment from two major contracts.

Improvements were logged across Asia and Europe.

On the downside, management narrowed guidance to below the midpoint of prior guidance, and the broker suspects local travel, particularly leisure, is under pressure.

Jarden pegs a three-year EPS compound annual growth rate of 5% between FY24 and FY27 and spies upside risk to forecasts and is awaiting guidance from the FY23 result. 

Buy rating retained. Target price inches up to $23.50 from $23.46.

This report was published on July 27, 2023.

Target price is $23.50 Current Price is $20.92 Difference: $2.58
If CTD meets the Jarden target it will return approximately 12% (excluding dividends, fees and charges).
Current consensus price target is $24.79, suggesting upside of 17.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 EPS of 57.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 36.64.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 63.3, implying annual growth of 2764.3%.
Current consensus DPS estimate is 26.4, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 33.3.

Forecast for FY24:

Jarden forecasts a full year FY24 EPS of 102.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.41.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 112.5, implying annual growth of 77.7%.
Current consensus DPS estimate is 48.7, implying a prospective dividend yield of 2.3%.
Current consensus EPS estimate suggests the PER is 18.7.

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

CWY    CLEANAWAY WASTE MANAGEMENT LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $2.72

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

Jarden reviews the outlook for companies within its transport and waste coverage following a rapid run up in interest rates both locally and globally. Hence, net interest expense is likely to continue building into FY24.

Jarden believes solid waste service pricing benefits and cost improvements are critical to the FY24 outlook for Cleanaway Waste Management.

The company will be cycling a very depressed earnings base from the second half of FY22 and the broker will look for evidence not only that labour productivity has improved but also that passing through of costs is actually occurring.

Overweight maintained. Target is reduced to $2.70 from $2.80.

This report was published on July 26, 2023.

Target price is $2.70 Current Price is $2.72 Difference: minus $0.02 (current price is over target).
If CWY meets the Jarden target it will return approximately minus 1% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $2.75, 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 5.00 cents and EPS of 6.90 cents.
At the last closing share price the estimated dividend yield is 1.84%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 39.42.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 7.1, implying annual growth of 77.9%.
Current consensus DPS estimate is 4.8, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 38.7.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 5.60 cents and EPS of 8.40 cents.
At the last closing share price the estimated dividend yield is 2.06%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 32.38.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.7, implying annual growth of 22.5%.
Current consensus DPS estimate is 5.8, implying a prospective dividend yield of 2.1%.
Current consensus EPS estimate suggests the PER is 31.6.

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

CXO    CORE LITHIUM LIMITED

New Battery Elements – Overnight Price: $0.66

Jarden rates ((CXO)) as Sell (5) –

Ouch! Core Lithium's FY24 guidance has fallen well short of consensus forecasts after lower recoveries at 49% disappointed expectations of 72%, reports Jarden. 

Production sat -30% below the previous forecasts. No FY25 guidance was provided but the broker expects production will be below that of FY24 (consensus had forecast steady production) given plant availability and mine sequencing.

To add insult to injury, implied C1 costs at the midpoint exceeded forecasts by -56% and future capex is uncertain.

The company closed the financial year with cash of $153m.

The brokers feels vindicated with its Sell rating, and cuts its target price to 41c from 53c.

This report was published on July 25, 2023.

Target price is $0.41 Current Price is $0.66 Difference: minus $0.25 (current price is over target).
If CXO meets the Jarden target it will return approximately minus 38% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $0.72, suggesting upside of 10.3%(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 minus 1.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 60.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 0.9, 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 72.2.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 0.00 cents and EPS of 3.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.41.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 9.1, implying annual growth of 911.1%.
Current consensus DPS estimate is 0.3, implying a prospective dividend yield of 0.5%.
Current consensus EPS estimate suggests the PER is 7.1.

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

EVS    ENVIROSUITE LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $0.09

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

EnviroSuite provided a "solid" quarter with annual recurring revenue of $59.4m slightly ahead of Wilsons' estimates. Industrial continues to be the main growth driver and this is expected to continue into FY24 with the company experiencing strong interest from mining and waste clients.

The FY23 results in August are likely to be a potential catalyst, the broker contends, providing greater clarity around the balance sheet and how the path to break even will be funded. In turn, this should remove a key issue for investors.

Overweight rating maintained. Target is $0.17.

This report was published on July 27, 2023.

Target price is $0.17 Current Price is $0.09 Difference: $0.078
If EVS meets the Wilsons target it will return approximately 85% (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 0.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 11.50.

Forecast for FY24:

Wilsons forecasts a full year FY24 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 15.33.

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

FMG    FORTESCUE METALS GROUP LIMITED

Iron Ore – Overnight Price: $21.68

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

Fortescue Metals reported a June quarter operating result that was in line with Goldman Sachs' estimates. The main focus was on FY24 guidance and the ramp up of Iron Bridge magnetite.

Guidance of 90 2-19 7mt for FY24 iron ore shipments includes 7mt from Iron Bridge, which implies a step down in haematite production. The broker notes the company is still aiming to take five decarbonisation projects to FID stage by the end of 2023.

Goldman Sachs retains a Sell rating for Fortescue Metals and reduces the target to $14.50 from $15.00.

This report was published on July 27, 2023.

Target price is $14.50 Current Price is $21.68 Difference: minus $7.18 (current price is over target).
If FMG meets the Goldman Sachs target it will return approximately minus 33% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $16.85, suggesting downside of -23.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 187.50 cents and EPS of 275.30 cents.
At the last closing share price the estimated dividend yield is 8.65%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.88.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 275.8, implying annual growth of N/A.
Current consensus DPS estimate is 186.4, implying a prospective dividend yield of 8.5%.
Current consensus EPS estimate suggests the PER is 7.9.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 92.26 cents and EPS of 168.16 cents.
At the last closing share price the estimated dividend yield is 4.26%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.89.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 212.3, implying annual growth of -23.0%.
Current consensus DPS estimate is 132.0, implying a prospective dividend yield of 6.0%.
Current consensus EPS estimate suggests the PER is 10.3.

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

GDF    GARDA PROPERTY GROUP

REITs – Overnight Price: $1.21

Moelis rates ((GDF)) as Buy (1) –

Garda Property's FY23 results were broadly in line with Moelis' estimates. The broker considers the company's industrial development pipeline attractive and undervalued at current levels.

Garda Property has also successfully secured ICR covenant reductions which the broker assesses should enable it to deliver on the development pipeline and add material levels of income to the portfolio over the next couple of years.

The main catalyst is a successful sale of Botanicca 7 & 9 at or around book value. Buy rating retained. Target edges down to $1.75 from $1.77.

This report was published on July 27, 2023.

Target price is $1.75 Current Price is $1.21 Difference: $0.54
If GDF meets the Moelis target it will return approximately 45% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 6.30 cents and EPS of 6.40 cents.
At the last closing share price the estimated dividend yield is 5.21%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.91.

Forecast for FY25:

Moelis forecasts a full year FY25 dividend of 8.00 cents and EPS of 8.60 cents.
At the last closing share price the estimated dividend yield is 6.61%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.07.

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

MAD    MADER GROUP LIMITED

Mining Sector Contracting – Overnight Price: $6.38

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

Mader Group delivered a strong update with revenue of $172.9m and robust EBITDA margins of 13.6% in the June quarter. Australian business revenue grew to $130.5m, up 31%, taking this to $468.5m for the year.

No quantitative guidance was provided in the outlook statement with the company expected to deliver its FY23 results on August 22. Moelis downgrades to Hold from Buy on a valuation basis while raising the target to $6.31 from $5.15.

This report was published on July 25, 2023.

Target price is $6.31 Current Price is $6.38 Difference: minus $0.07 (current price is over target).
If MAD meets the Moelis target it will return approximately minus 1% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 5.50 cents and EPS of 18.80 cents.
At the last closing share price the estimated dividend yield is 0.86%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 33.94.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 7.60 cents and EPS of 25.20 cents.
At the last closing share price the estimated dividend yield is 1.19%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.32.

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

MP1    MEGAPORT LIMITED

Cloud services – Overnight Price: $10.60

Goldman Sachs rates ((MP1)) as Buy (1) –

Megaport reported products-led growth in the June quarter, supported by up-selling. Goldman Sachs was disappointed customer numbers were not disclosed although notes an "improvement in the cadence of key medium-term revenue drivers".

The broker continues to expect FY24 adjusted EBITDA of $53m and increases the target to $10.60 from $9.30. Buy rating retained.

This report was published on July 27, 2023.

Target price is $10.60 Current Price is $10.60 Difference: $0
If MP1 meets the Goldman Sachs target it will return approximately 0% (excluding dividends, fees and charges).
Current consensus price target is $10.85, suggesting upside of 2.7%(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 11.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 96.36.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -9.2, 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 N/A.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 0.00 cents and EPS of 5.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 212.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 3.6, 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 293.3.

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

MQG    MACQUARIE GROUP LIMITED

Wealth Management & Investments – Overnight Price: $176.71

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

Goldman Sachs found the fourth quarter performance from Macquarie Group weak, with both annuity-style business and capital markets-facing business substantially down on the prior comparable quarter.

This was attributed by management to weaker trading conditions and, while no group guidance was provided, divisional guidance for the asset management and commodity divisions implied weaker outcomes.

Goldman Sachs expects FY24 net profit to fall by -23% yet remains optimistic about the medium-term. Neutral retained. Target is raised to $192.97 from $192.01.

This report was published on July 28, 2023.

Target price is $192.97 Current Price is $176.71 Difference: $16.26
If MQG meets the Goldman Sachs target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $190.52, suggesting upside of 8.5%(ex-dividends)
The company's fiscal year ends in March.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 570.00 cents and EPS of 1021.20 cents.
At the last closing share price the estimated dividend yield is 3.23%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.30.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1090.1, implying annual growth of -19.5%.
Current consensus DPS estimate is 658.6, implying a prospective dividend yield of 3.8%.
Current consensus EPS estimate suggests the PER is 16.1.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 640.00 cents and EPS of 1131.00 cents.
At the last closing share price the estimated dividend yield is 3.62%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.62.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1192.5, implying annual growth of 9.4%.
Current consensus DPS estimate is 704.6, implying a prospective dividend yield of 4.0%.
Current consensus EPS estimate suggests the PER is 14.7.

Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

NXS    NEXT SCIENCE LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $0.56

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

First half revenue of US$10m from Next Science beat Wilsons' forecasts and its direct business is now 77% of total revenue. The focus on the direct business is considered positive although coming at a cost.

Wilsons also hails the ability of Next Science to capture larger volumes in the wound care centres and long-term care facilities, increasing sales productivity, yet remains cautious about the difficulties over the long-term because of lower margins and a crowded market.

The broker retains a Market Weight rating and lowers the target to $0.56 from $0.70.

This report was published on July 28, 2023.

Target price is $0.56 Current Price is $0.56 Difference: $0
If NXS meets the Wilsons target it will return approximately 0% (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 minus 4.61 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 12.14.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 4.02 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 13.94.

This company reports in USD. 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

PME    PRO MEDICUS LIMITED

Medical Equipment & Devices – Overnight Price: $69.28

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

Goldman Sachs expects the growing importance of a radiology IT system that can materially improve efficiency will underpin the competitive advantage that Pro Medicus offers.

Recent data signals waiting lists are widening as demand for imaging continues to expand and staffing challenges persist. Multi-year hospital adoption of cloud-based data/infrastructure also plays strongly to the company's advantage.

Goldman Sachs upgrades to Buy from Neutral, expecting Visage 7 will be set for a robust period of transaction revenue as several large accounts are taken on board. Target is raised to $76.

This report was published on July 27, 2023.

Target price is $76.00 Current Price is $69.28 Difference: $6.72
If PME meets the Goldman Sachs target it will return approximately 10% (excluding dividends, fees and charges).
Current consensus price target is $52.84, suggesting downside of -24.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 29.00 cents and EPS of 57.00 cents.
At the last closing share price the estimated dividend yield is 0.42%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 121.54.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 54.8, implying annual growth of 28.6%.
Current consensus DPS estimate is 27.0, implying a prospective dividend yield of 0.4%.
Current consensus EPS estimate suggests the PER is 128.0.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 39.00 cents and EPS of 76.00 cents.
At the last closing share price the estimated dividend yield is 0.56%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 91.16.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 69.8, implying annual growth of 27.4%.
Current consensus DPS estimate is 34.1, implying a prospective dividend yield of 0.5%.
Current consensus EPS estimate suggests the PER is 100.5.

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

---

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

Pro Medicus has announced a seven-year, $24m contract with Memorial Sloan Kettering Cancer Center that, in Wilsons' view, demonstrates its firm foothold in the academic medical centre market.

The broker points out this market is important as it consists of high-throughput hospitals and centres with substantial amounts of patient data. The contract involves all three of the company's products, to be implemented over the next six months and going live in the first quarter of 2024.

Market Weight rating and $71 target maintained.

This report was published on July 27, 2023.

Target price is $71.00 Current Price is $69.28 Difference: $1.72
If PME meets the Wilsons target it will return approximately 2% (excluding dividends, fees and charges).
Current consensus price target is $52.84, suggesting downside of -24.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 28.50 cents and EPS of 57.10 cents.
At the last closing share price the estimated dividend yield is 0.41%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 121.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 54.8, implying annual growth of 28.6%.
Current consensus DPS estimate is 27.0, implying a prospective dividend yield of 0.4%.
Current consensus EPS estimate suggests the PER is 128.0.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 34.30 cents and EPS of 68.70 cents.
At the last closing share price the estimated dividend yield is 0.50%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 100.84.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 69.8, implying annual growth of 27.4%.
Current consensus DPS estimate is 34.1, implying a prospective dividend yield of 0.5%.
Current consensus EPS estimate suggests the PER is 100.5.

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

QAN    QANTAS AIRWAYS LIMITED

Transportation & Logistics – Overnight Price: $6.58

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

Goldman Sachs updates half-yearly estimates for Qantas Airways in 2024 and 2025 to reflect the latest trends.

As a key beneficiary of the reopening of travel after the pandemic, the broker expects the company's traffic capacity will return to 95% of pre-pandemic levels by FY24 and earnings capacity will exceed that of pre-pandemic levels by 74%.

The stock appears not priced for a generic recovery and Goldman Sachs envisages upside associated with substantially improved medium-term earnings capacity. Buy rating maintained. Target is $8.50.

This report was published on July 26, 2023.

Target price is $8.50 Current Price is $6.58 Difference: $1.92
If QAN meets the Goldman Sachs target it will return approximately 29% (excluding dividends, fees and charges).
Current consensus price target is $7.61, suggesting upside of 15.8%(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 98.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.71.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 95.0, 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 6.9.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 0.00 cents and EPS of 99.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.65.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 102.5, implying annual growth of 7.9%.
Current consensus DPS estimate is 2.5, implying a prospective dividend yield of 0.4%.
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

QOR    QORIA LIMITED

Software & Services – Overnight Price: $0.26

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

Qoria, formerly known as FamilyZone, has flagged headline annual recurring revenue of $97m in its fourth quarter update, ahead of Wilsons' forecasts.

The update underscored the incremental traction the company is achieving across both geographies and segments.

The broker is also more enthusiastic about the opportunity in FY24, with only modest organic growth required to meet its forecasts. Overweight maintained. Target is $0.33.

This report was published on July 27, 2023.

Target price is $0.33 Current Price is $0.26 Difference: $0.075
If QOR meets the Wilsons target it will return approximately 29% (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 3.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 6.89.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 2.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 10.20.

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

QUB    QUBE HOLDINGS LIMITED

Transportation & Logistics – Overnight Price: $2.94

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

Jarden reviews the outlook for companies within its transport and waste coverage following a rapid run up in interest rates both locally and globally. Hence, net interest expense is likely to continue building into FY24.

For Qube Holdings, which is cycling record levels of industry activity and a strong season in agriculture, the broker believes the risk to the  earnings outlook is balanced.

Net interest expense is likely to be ongoing but a more modest drag on earnings into FY24, based on forecasts. Overweight maintained. Target is reduced to $3.15 from $3.30.

This report was published on July 26, 2023.

Target price is $3.15 Current Price is $2.94 Difference: $0.21
If QUB meets the Jarden target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $3.41, suggesting upside of 16.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 7.60 cents and EPS of 11.90 cents.
At the last closing share price the estimated dividend yield is 2.59%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.71.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 13.0, implying annual growth of 97.3%.
Current consensus DPS estimate is 7.8, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 22.5.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 8.70 cents and EPS of 13.40 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 21.94.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 13.5, implying annual growth of 3.8%.
Current consensus DPS estimate is 8.3, implying a prospective dividend yield of 2.8%.
Current consensus EPS estimate suggests the PER is 21.6.

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

RIO    RIO TINTO LIMITED

Bulks – Overnight Price: $116.62

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

First half results were in line with expectations, while Rio Tinto's iron ore EBITDA was ahead of Goldman Sachs estimates because of lower costs in the Pilbara.

The company has indicated that inflation is still having an impact although slowing, and lower costs are largely expected in the second half, particularly for aluminium.

Goldman Sachs continues to rate the stock a Buy because of a compelling relative valuation, attractive free cash flow and dividend yield. Strong production growth is also expected over 2023 and 2024. Target edges up to $126.90 from $126.60.

This report was published on July 26, 2023.

Target price is $126.90 Current Price is $116.62 Difference: $10.28
If RIO meets the Goldman Sachs target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $114.17, suggesting downside of -3.2%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 520.83 cents and EPS of 886.91 cents.
At the last closing share price the estimated dividend yield is 4.47%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.15.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 993.0, implying annual growth of N/A.
Current consensus DPS estimate is 583.8, implying a prospective dividend yield of 5.0%.
Current consensus EPS estimate suggests the PER is 11.9.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 610.12 cents and EPS of 941.96 cents.
At the last closing share price the estimated dividend yield is 5.23%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.38.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1126.6, implying annual growth of 13.5%.
Current consensus DPS estimate is 736.6, implying a prospective dividend yield of 6.2%.
Current consensus EPS estimate suggests the PER is 10.5.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

SFR    SANDFIRE RESOURCES LIMITED

Copper – Overnight Price: $6.59

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

June quarter results from Sandfire Resources were slightly better than Goldman Sachs expected. The Motheo copper mine in Botswana appears to be ramping up well and the company is intent on lifting mine development rates and head grades.

Goldman Sachs also notes incrementally positive exploration news from Spain, with drilling intersecting a down dip extension of the high-value Magdalena deposit, required to push the Matsa mine life beyond 10 years.

The broker continues to rate the stock a Sell based on a stretched valuation versus its Australian mining coverage and global copper stocks while raising the target to $5.40 from $4.90.

This report was published on July 27, 2023.

Target price is $5.40 Current Price is $6.59 Difference: minus $1.19 (current price is over target).
If SFR meets the Goldman Sachs target it will return approximately minus 18% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $6.78, suggesting upside of 0.8%(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 13.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 50.69.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -20.6, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 6.10 cents and EPS of 20.00 cents.
At the last closing share price the estimated dividend yield is 0.93%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 32.95.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 13.8, implying annual growth of N/A.
Current consensus DPS estimate is 3.2, implying a prospective dividend yield of 0.5%.
Current consensus EPS estimate suggests the PER is 48.8.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

SOM    SOMNOMED LIMITED

Medical Equipment & Devices – Overnight Price: $0.89

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

SomnoMed has met its revenue guidance target of 15-20% growth and reiterated FY23 EBITDA guidance of $2m or more in it is fourth quarter update. Wilsons notes device sales appear largely in line with expectations.

Importantly, RestAssure has completed development and an FDA filing is underway with a decision expected in the second quarter and a launch in the US in the second half. Overweight rating and $2 target retained.

This report was published on July 26, 2023.

Target price is $2.00 Current Price is $0.89 Difference: $1.11
If SOM meets the Wilsons target it will return approximately 125% (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 5.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 15.61.

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 18.16.

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

WOR    WORLEY LIMITED

Energy Sector Contracting – Overnight Price: $17.22

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

Goldman Sachs updates estimates to factor in the divestment of Worley's sale of the North American turnaround and maintenance business.

Revenue assumptions are lowered for FY24 and FY25 but the EBITA margin is raised by 50 basis points, to 7.8% and 7.9%, respectively, given the improved business mix.

The broker believes the company is well-positioned to play a role in the transition to a more sustainable energy mix over the long-term and this should gain increased intention as covid-related impacts fade. Neutral rating maintained. Target rises to $17.70 from $17.30.

This report was published on July 26, 2023.

Target price is $17.70 Current Price is $17.22 Difference: $0.48
If WOR meets the Goldman Sachs target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $16.63, suggesting downside of -4.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 48.00 cents and EPS of 54.00 cents.
At the last closing share price the estimated dividend yield is 2.79%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.89.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 61.1, implying annual growth of 86.2%.
Current consensus DPS estimate is 50.0, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 28.3.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 57.00 cents and EPS of 73.00 cents.
At the last closing share price the estimated dividend yield is 3.31%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.59.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 77.0, implying annual growth of 26.0%.
Current consensus DPS estimate is 50.7, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 22.5.

Market Sentiment: 0.5
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