Australian Broker Call *Extra* Edition – Aug 29, 2023

This story features ACUSENSUS LIMITED, and other companies. For more info SHARE ANALYSIS: ACE

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)

ACE   ADA   APE   ASG   AWC   BRI   DMP   EBO   EHL   HMC   HSN   IEL (2)   ILU   PFP   RDY   SDR   SHA   WOW   WTC  

ACE    ACUSENSUS LIMITED

Transportation & Logistics – Overnight Price: $0.77

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

Canaccord Genuity reports Acusensus' FY23 financials proved in line with guidance yet they marked a material beat against forecasts published in its prospectus of January this year.

For now, the broker's forecasts have gone up slightly but were the company to be successful in various global tender opportunities, there could be material upside to financials for the years beyond FY24, the report emphasises.

Acusensus' revenues are derived from highly predictable, long duration, high margin government contracts with no churn detected since inception, the broker highlights.

According to Canaccord Genuity, tendering opportunities have never been higher, suggesting the risk is to the upside. Buy. Target $1.10 which seems a lot lower but in the meantime there has been a share split five-for-one.

This report was published on August 24, 2023.

Target price is $1.10 Current Price is $0.77 Difference: $0.335
If ACE meets the Canaccord Genuity target it will return approximately 44% (excluding dividends, fees and charges).
The company's fiscal year ends in July.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of 0.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 153.00.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of 1.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 58.85.

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

ADA    ADACEL TECHNOLOGIES LIMITED

Software & Services – Overnight Price: $0.54

Taylor Collison rates ((ADA)) as Outperform (2) –

It is Taylor Collison's view Adacel Technologies' FY23 was disappointing, the result impacted by a major contract being reduced by -20%. Yet, after realigning costs in H1, margins recovered in H2, the broker observes.

FY24 EPS forecast has shrunk by -10%. The broker states any new contract wins should start flowing through into FY25. Currently one contract win is being accounted for in forecasts.

Were Adacel to win more new contracts, the positive impact could be large. This is why Taylor Collison retains a positive view. Outperform.

This report was published on August 18, 2023.

Current Price is $0.54. Target price not assessed.
The company's fiscal year ends in June.

Forecast for FY24:

Taylor Collison forecasts a full year FY24 dividend of 4.49 cents and EPS of 4.34 cents.
At the last closing share price the estimated dividend yield is 8.32%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.44.

Forecast for FY25:

Taylor Collison forecasts a full year FY25 dividend of 3.30 cents and EPS of 3.40 cents.
At the last closing share price the estimated dividend yield is 6.11%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.88.

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

APE    EAGERS AUTOMOTIVE LIMITED

Automobiles & Components – Overnight Price: $14.53

Moelis rates ((APE)) as Buy (1) –

Eagers Automotive released interim financials that beat forecasts by Moelis. The net profit came in 9% higher-than-forecast on the back of stronger deliveries in May and June.

According to management, Eagers Automotive is on track to beat its own guidance for the full year. More supplies of Toyotas have the potential to add extra upside potential, the broker suggests.

Another source of potential upside is the company's exclusive retailing of China's BYD in Australia, though there's potential for cannibalisation, Moelis admits.

Buy. Target price $15.50 (unchanged).

This report was published on August 25, 2023.

Target price is $15.50 Current Price is $14.53 Difference: $0.97
If APE meets the Moelis target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $14.88, suggesting upside of 2.4%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 73.50 cents and EPS of 112.00 cents.
At the last closing share price the estimated dividend yield is 5.06%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.97.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 114.4, implying annual growth of -5.7%.
Current consensus DPS estimate is 71.3, implying a prospective dividend yield of 4.9%.
Current consensus EPS estimate suggests the PER is 12.7.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 68.40 cents and EPS of 101.80 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 14.27.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 104.6, implying annual growth of -8.6%.
Current consensus DPS estimate is 68.1, implying a prospective dividend yield of 4.7%.
Current consensus EPS estimate suggests the PER is 13.9.

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

ASG    AUTOSPORTS GROUP LIMITED

Automobiles & Components – Overnight Price: $2.57

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

Jarden has firmly kept its Overweight rating for Autosports Group, having spotted enough evidence in the FY23 financials to predict revenues of $2.78bn in FY24 should be achieved.

The broker is relying on the robust order book plus strong services/parts revenue and the projected contribution from acquisitions. At the EPS level, Jarden is counting on 37c.

As far as FY23 is concerned, the broker was slightly disappointed with the gross margin, but robust growth at the top line in combination with tight cost control keep the optimism alive.

EPS forecasts have been increased by 12.3% and 20.3% for FY24 and FY25. Target price falls to $3.65 from $3.75, with Jarden pointing out this is still well above the current share price.

This report was published on August 24, 2023.

Target price is $3.65 Current Price is $2.57 Difference: $1.08
If ASG meets the Jarden target it will return approximately 42% (excluding dividends, fees and charges).
Current consensus price target is $3.13, suggesting upside of 21.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 21.50 cents and EPS of 37.20 cents.
At the last closing share price the estimated dividend yield is 8.37%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.91.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 34.0, implying annual growth of 4.5%.
Current consensus DPS estimate is 19.6, implying a prospective dividend yield of 7.6%.
Current consensus EPS estimate suggests the PER is 7.6.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 21.70 cents and EPS of 37.60 cents.
At the last closing share price the estimated dividend yield is 8.44%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.84.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 30.3, implying annual growth of -10.9%.
Current consensus DPS estimate is 17.6, implying a prospective dividend yield of 6.8%.
Current consensus EPS estimate suggests the PER is 8.5.

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

AWC    ALUMINA LIMITED

Aluminium, Bauxite & Alumina – Overnight Price: $1.07

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

The AWAC alumina joint venture finished the first half with a much lower net cash position of around US$150m due to lower earnings and a reduction in payables.

Alumina Ltd updated its 2023 guidance to incorporate Alcoa's lower expected alumina production from both Western Australia and Brazil.

Unit costs are expected to fall in the 2H on lower caustic and maintenance costs, partly offset by lower bauxite grades in WA, explain the analysts. The lower grades are considered an ongoing concern for AWAC along with timelines for new bauxite permits.

Goldman Sachs lowers its forecasts for Alumina Ltd and reduces its target by -8% to $1.15. Sell.

This report was published on August 24, 2023.

Target price is $1.15 Current Price is $1.07 Difference: $0.075
If AWC meets the Goldman Sachs target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $1.25, suggesting upside of 16.3%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 2.25 cents and EPS of 4.49 cents.
At the last closing share price the estimated dividend yield is 2.09%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.93.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -25.6, 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 7.79 cents and EPS of 10.63 cents.
At the last closing share price the estimated dividend yield is 7.24%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.11.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 25.3, implying annual growth of N/A.
Current consensus DPS estimate is 3.0, implying a prospective dividend yield of 2.8%.
Current consensus EPS estimate suggests the PER is 4.2.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

BRI    BIG RIVER INDUSTRIES LIMITED

Building Products & Services – Overnight Price: $2.45

Moelis rates ((BRI)) as Buy (1) –

Big River Industries' FY23 result is labeled "resilient" given tougher trading conditions in H2. Underlying earnings (EBITDA) only missed the broker's estimate by -4%.

The broker explains the -15bps contraction in EBITDA margin (to 11.5% vs 11.7% pcp) is mostly attributable to NZ Panels. A reduction in working capital (-6.2%) helped improving cash conversion to 112%. Net debt has shrunk.

While management remains confident the EBITDA margin will be 10%-plus throughout the cycle, in the short term there shall be ongoing pressure as system investments continue.

No quantified guidance was provided for FY24. Moelis has reduced EPS forecasts by -16%/-16%/-11% for FY24-26. Buy. Target falls to $3.36 from $3.94.

This report was published on August 25, 2023.

Target price is $3.36 Current Price is $2.45 Difference: $0.91
If BRI meets the Moelis target it will return approximately 37% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 15.70 cents and EPS of 26.20 cents.
At the last closing share price the estimated dividend yield is 6.41%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.35.

Forecast for FY25:

Moelis forecasts a full year FY25 dividend of 15.90 cents and EPS of 26.50 cents.
At the last closing share price the estimated dividend yield is 6.49%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.25.

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

DMP    DOMINO'S PIZZA ENTERPRISES LIMITED

Food, Beverages & Tobacco – Overnight Price: $51.80

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

FY23 results for both A&NZ and Europe were better than forecasts by Goldman Sachs, while Asia (including SE Asia) came in below expectation.

Trading for the first seven weeks of FY24 showed like-for-like sales in Europe and A&NZ of 6.6%, while Asia remained a drag at -7.8%, explain the analysts.

Management announced an increased cost-out program targeting around $33-40m of earnings (EBIT) improvement in FY24 (which should be largely structural), up from $25-30m.

The broker lowers its target to $40.30 from $41.10, which implies a valuation below the historical average. It's felt this lower valuation is justified due to lower quality growth driven by store closures and still high execution risk. Sell.

This report was published on August 24, 2023.

Target price is $40.30 Current Price is $51.80 Difference: minus $11.5 (current price is over target).
If DMP meets the Goldman Sachs target it will return approximately minus 22% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $54.33, suggesting upside of 4.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 136.00 cents and EPS of 169.00 cents.
At the last closing share price the estimated dividend yield is 2.63%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.65.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 176.7, implying annual growth of 283.3%.
Current consensus DPS estimate is 136.3, implying a prospective dividend yield of 2.6%.
Current consensus EPS estimate suggests the PER is 29.3.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 156.00 cents and EPS of 195.00 cents.
At the last closing share price the estimated dividend yield is 3.01%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.56.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 214.5, implying annual growth of 21.4%.
Current consensus DPS estimate is 163.3, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 24.1.

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

EBO    EBOS GROUP LIMITED

Healthcare services – Overnight Price: $33.25

Jarden rates ((EBO)) as Upgrade to Neutral from Underweight (3) –

Ebos Group's FY23 release proved solid and in line, comments Jarden. Inflation remains an ongoing key headwind but management remains confident it can offset the impact through more volume, more efficiences and acquisitions, the broker adds.

Underlying cash flows proved stronger-than-expected, the final dividend "beat" and net debt was lower than expected. The company has acquired Superior Pet Food, a NZ premium dog roll manufacturer for A$77m; expected to be marginally EPS accretive immediately.

Management has also expressed its confidence it will be able to limit the impact from the lost Chemist Warehouse contract, points out the broker.

Minor forecast increases have been applied. Target price gains 2% to NZ$36.50. Upgrade to Neutral from Underweight.

This report was published on August 24, 2023.

Current Price is $33.25. Target price not assessed.
Current consensus price target is $34.61, suggesting upside of 4.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 108.00 cents and EPS of 158.30 cents.
At the last closing share price the estimated dividend yield is 3.25%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 153.9, implying annual growth of 15.8%.
Current consensus DPS estimate is 105.6, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 21.6.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 110.00 cents and EPS of 137.30 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 24.22.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 148.8, implying annual growth of -3.3%.
Current consensus DPS estimate is 101.3, implying a prospective dividend yield of 3.0%.
Current consensus EPS estimate suggests the PER is 22.3.

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

EHL    EMECO HOLDINGS LIMITED

Mining Sector Contracting – Overnight Price: $0.65

Jarden rates ((EHL)) as Buy (1) –

Jarden is willing to support management at Emeco Holdings in their projection that a successful turnaround is in the making. FY24 should prove better than FY23, which was challenged on many fronts, but with a skew towards H2, the broker agrees.

Jarden suggests with Emeco's balance well capitalised, the next step is for management to demonstrate a sustained path for improved earnings in order for the company's valuation multiple to re-rate.

Jarden takes a view out to FY26, and on this basis it suggests today's share price provides a good risk versus reward proposition for investors. Minimal adjustments have been made to forecasts. Target remains $1.10. Buy.

This report was published on August 24, 2023.

Target price is $1.10 Current Price is $0.65 Difference: $0.45
If EHL meets the Jarden target it will return approximately 69% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 5.10 cents and EPS of 14.60 cents.
At the last closing share price the estimated dividend yield is 7.85%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.45.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 5.70 cents and EPS of 16.40 cents.
At the last closing share price the estimated dividend yield is 8.77%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 3.96.

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

HMC    HMC CAPITAL LIMITED

Wealth Management & Investments – Overnight Price: $5.33

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

FY23 saw earnings decline and the composition of earnings remains volatile, but Jarden remains confident enough that HMC Capital will be able to attract growth in funds from operations (FFO) in the years ahead.

The broker reminds investors management's focus is on attractive asset classes with structural growth drivers. Jarden believes the shares will remain supported, also with HMC Capital benefiting from economies of scale.

Overweight rating retained. Target price lifts to $6 from $5.80.

This report was published on August 24, 2023.

Target price is $6.00 Current Price is $5.33 Difference: $0.67
If HMC meets the Jarden target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $5.34, suggesting upside of 0.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 12.00 cents and EPS of 24.40 cents.
At the last closing share price the estimated dividend yield is 2.25%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.84.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 25.9, implying annual growth of N/A.
Current consensus DPS estimate is 14.3, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 20.6.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 13.10 cents and EPS of 26.60 cents.
At the last closing share price the estimated dividend yield is 2.46%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.04.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 26.9, implying annual growth of 3.9%.
Current consensus DPS estimate is 12.5, implying a prospective dividend yield of 2.3%.
Current consensus EPS estimate suggests the PER is 19.8.

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

HSN    HANSEN TECHNOLOGIES LIMITED

IT & Support – Overnight Price: $5.75

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

FY23 underlying earnings (EBITDA) for Hansen Technologies were a 5% beat compared to Goldman Sachs forecast due to faster 2H revenue acceleration, lower costs and a sequential step-up in high-margin licence revenue.

While the broker (and consensus) had expected around 4% organic revenue growth in FY24, management raised guidance to 5-7% from 3-5% on pricing, upgrades at existing customers and new business wins.

Even after allowing for inflation and investing for growth, the company believes earnings margins will remain above pre-covid levels.

The target rises by 11% to $5.75 and the Neutral rating is unchanged.

This report was published on August 24, 2023.

Target price is $5.75 Current Price is $5.75 Difference: $0
If HSN meets the Goldman Sachs target it will return approximately 0% (excluding dividends, fees and charges).
Current consensus price target is $6.43, suggesting upside of 11.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 11.00 cents and EPS of 29.00 cents.
At the last closing share price the estimated dividend yield is 1.91%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.83.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 26.5, implying annual growth of 25.4%.
Current consensus DPS estimate is 10.3, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 21.7.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 11.00 cents and EPS of 31.00 cents.
At the last closing share price the estimated dividend yield is 1.91%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.55.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 27.6, implying annual growth of 4.2%.
Current consensus DPS estimate is 10.5, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 20.8.

Market Sentiment: 1.0
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: $25.53

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

In the wake of FY23 results, Goldman Sachs believes IDP Education is well placed to deliver substantial operating leverage as student placement scales-up, given improvements in agent productivity and prior investments into technology.

While only a small beat compared to the broker's forecast, the strong performance for student placement within FY23 results is expected to focus attention on the long-term structural growth opportunity.

IELTS earnings were softer than the analyst expected though this division has a smaller overall earnings impact than student placement and expectations have already been re-based lower following the announcement of increased competition in Canada.

The target rises to $29.65 from $28.90. Buy.

This report was published on August 24, 2023.

Target price is $29.65 Current Price is $25.53 Difference: $4.12
If IEL meets the Goldman Sachs target it will return approximately 16% (excluding dividends, fees and charges).
Current consensus price target is $27.79, suggesting upside of 8.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 45.00 cents and EPS of 64.00 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 39.89.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 62.3, implying annual growth of 16.8%.
Current consensus DPS estimate is 45.6, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 41.0.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 56.00 cents and EPS of 80.00 cents.
At the last closing share price the estimated dividend yield is 2.19%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.91.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 74.3, implying annual growth of 19.3%.
Current consensus DPS estimate is 53.5, implying a prospective dividend yield of 2.1%.
Current consensus EPS estimate suggests the PER is 34.4.

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

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

IDP Education's FY23 performance proved slightly better than Jarden's forecasts, but equally important is the broker saw enough to project a continuation in the company's growth trajectory.

Student Placement volumes in combination with IELTS volumes, and price rises of 3-5% should combine with operating leverage (margin expansion), the broker suggests.

As the shares are trading at a sizeable discount to their historical premium, Jarden reiterates its Overweight rating. Target $30.85, down from $33.45.

This report was published on August 24, 2023.

Target price is $30.85 Current Price is $25.53 Difference: $5.32
If IEL meets the Jarden target it will return approximately 21% (excluding dividends, fees and charges).
Current consensus price target is $27.79, suggesting upside of 8.9%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 50.60 cents and EPS of 67.90 cents.
At the last closing share price the estimated dividend yield is 1.98%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 37.60.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 62.3, implying annual growth of 16.8%.
Current consensus DPS estimate is 45.6, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 41.0.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 64.60 cents and EPS of 86.80 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 29.41.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 74.3, implying annual growth of 19.3%.
Current consensus DPS estimate is 53.5, implying a prospective dividend yield of 2.1%.
Current consensus EPS estimate suggests the PER is 34.4.

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

ILU    ILUKA RESOURCES LIMITED

Mineral Sands – Overnight Price: $8.05

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

Goldman Sachs lowers its target for Iluka Resources to $11.20 from $13.70 on lower forecast earnings and a lower multiple.

A 1H FY23 underlying earnings (EBITDA) miss versus the analysts' expectation was due to lower capitalised inventory and lower attributable iron ore earnings from BHP Group's ((BHP)) Mining Area C (MAC) royalty.

Management expects flat zircon pricing in Q3 and noted subdued economic activity in China (which represents around 40% of the company's zircon sales) is impacting 3Q demand and sales volumes. 

The Buy rating is maintained.

This report was published on August 24, 2023.

Target price is $11.20 Current Price is $8.05 Difference: $3.15
If ILU meets the Goldman Sachs target it will return approximately 39% (excluding dividends, fees and charges).
Current consensus price target is $10.26, suggesting upside of 27.5%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 46.00 cents and EPS of 93.00 cents.
At the last closing share price the estimated dividend yield is 5.71%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.66.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 89.4, implying annual growth of -37.9%.
Current consensus DPS estimate is 10.6, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 9.0.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 35.00 cents and EPS of 50.00 cents.
At the last closing share price the estimated dividend yield is 4.35%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.10.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 89.7, implying annual growth of 0.3%.
Current consensus DPS estimate is 16.4, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 9.0.

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

PFP    PROPEL FUNERAL PARTNERS LIMITED

Consumer Products & Services – Overnight Price: $4.40

Moelis rates ((PFP)) as Buy (1) –

The FY23 performance does not featrure much in Moelis's research update. This might be because, while keeping an overall positive view longer term, the broker continues to forecast negative organic volumes for H1 FY24.

If all goes to plan, volumes should again pick up in H2 as death numbers are anticipated to return to their long term trend. The broker notes the EBITDA margin remained stable in H1 versus the prior six month period (H2 FY22).

Moelis believes the outlook remains supported by long-term drivers of demographic tailwinds in combination with a long runway of accretive acquisitions.

Buy. Target has crept higher to $5.01 from $4.94 previously.

This report was published on August 25, 2023.

Target price is $5.01 Current Price is $4.40 Difference: $0.61
If PFP meets the Moelis target it will return approximately 14% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 13.30 cents and EPS of 19.00 cents.
At the last closing share price the estimated dividend yield is 3.02%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.16.

Forecast for FY25:

Moelis forecasts a full year FY25 dividend of 14.70 cents and EPS of 20.90 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 21.05.

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

RDY    READYTECH HOLDINGS LIMITED

Software & Services – Overnight Price: $3.30

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

In a surprise-free result, FY23 revenue and earnings for ReadyTech Holdings were in line with forecasts by Goldman Sachs and guidance, with all segments performing as expected.

The broker highlights $12m in major new enterprise contracts were signed in FY23 and management has high conviction in the deal pipeline of more than $28m.

The company guides for organic revenue growth in the mid-teens (in line with the analyst) with an earnings margin of 34-35%.

The broker maintains its $4.25 target and Buy rating.

This report was published on August 24, 2023.

Target price is $4.25 Current Price is $3.30 Difference: $0.95
If RDY meets the Goldman Sachs target it will return approximately 29% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 EPS of 16.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.63.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 EPS of 20.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.50.

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: $4.44

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

FY23 revenue and key operating metrics for SiteMinder were in line with the recent Q4 result update, while management reiterated key forward growth and profitability targets announced during that update.

Goldman Sachs highlights a stronger subscription revenue performance in FY23 more than offset a weaker transaction performance.

Higher gross profit margin (GPM) subscription revenue and an unchanged cost base combine to drive up earnings estimates and the broker's target price rises by 7% to $4.60.

The Neutral rating is maintained.

This report was published on August 24, 2023.

Target price is $4.60 Current Price is $4.44 Difference: $0.16
If SDR meets the Goldman Sachs target it will return approximately 4% (excluding dividends, fees and charges).
Current consensus price target is $5.35, suggesting upside of 20.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 11.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 40.36.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -7.8, 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 FY25:

Goldman Sachs forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 4.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 111.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 0.1, 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 4440.0.

Market Sentiment: 0.8
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: $1.59

Moelis rates ((SHA)) as Buy (1) –

FY23 financials came out towards the top of recent trading update ranges, comments Moelis post Shape Australia's market update release.

The broker has spotted enough operational momentum to upgrade its forecasts. Higher revenue growth will not be matched by similar increases in margins, offers the broker. Too much overhead inflation to deal with.

A tight labour market remains a headwind and thus Moelis has decreased EPS forecasts -1.4%/-13.4%/-10.7% for FY24-FY26. The shares are believed to be trading on undemanding multiples.

Buy. Target loses -1c to $2.00.

This report was published on August 25, 2023.

Target price is $2.00 Current Price is $1.59 Difference: $0.41
If SHA meets the Moelis target it will return approximately 26% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 13.10 cents and EPS of 15.80 cents.
At the last closing share price the estimated dividend yield is 8.24%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.06.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 15.60 cents and EPS of 18.80 cents.
At the last closing share price the estimated dividend yield is 9.81%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.46.

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: $37.85

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

Goldman Sachs assesses both a strong FY23 result and outlook commentary by management at Woolworths Group. The gross profit margin (GPM) rose by 76bps partly due to covid cost reductions and improved promotional effectiveness and mix.

The broker suspects New Zealand Food will be more challenged in the near-term given the market is focused on value and there is intense competition.

The broker lowers its target to $42 from $42.20 on a lower valuation for the Australian Food and New Zealand Food segments.

Goldmans' Buy rating is unchanged on high-quality sales growth and GPM expansion in the expectation of a well managed cost-of-doing-business (CODB) measure.

This report was published on August 24, 2023.

Target price is $42.00 Current Price is $37.85 Difference: $4.15
If WOW meets the Goldman Sachs target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $37.42, suggesting downside of -1.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 112.00 cents and EPS of 148.00 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 25.57.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 149.2, implying annual growth of 12.0%.
Current consensus DPS estimate is 110.2, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 25.4.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 122.00 cents and EPS of 161.00 cents.
At the last closing share price the estimated dividend yield is 3.22%.
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 159.9, implying annual growth of 7.2%.
Current consensus DPS estimate is 121.5, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 23.7.

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

WTC    WISETECH GLOBAL LIMITED

Cloud services – Overnight Price: $70.45

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

While WiseTech Global reported solid FY23 results, in Goldman Sachs' view, FY24 guidance by management came in well below expectation. 

The broker notes a much weaker-than-anticipated forward margin profile due to another step change in R&D expenses as management aims to invest in its six key development areas and also beds down recent M&A.

M&A revenue guidance of $125-150m also fell short of the analysts' prior $169m forecast. FY26 guidance for margins of more than 50% compares to the broker's latest 51.5% estimate.

The target falls to $75 from $82, while the Neutral rating is unchanged.

This report was published on August 24, 2023.

Target price is $75.00 Current Price is $70.45 Difference: $4.55
If WTC meets the Goldman Sachs target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $77.03, suggesting upside of 9.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 15.00 cents and EPS of 76.00 cents.
At the last closing share price the estimated dividend yield is 0.21%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 92.70.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 84.9, implying annual growth of 31.0%.
Current consensus DPS estimate is 15.8, implying a prospective dividend yield of 0.2%.
Current consensus EPS estimate suggests the PER is 83.0.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 22.00 cents and EPS of 108.00 cents.
At the last closing share price the estimated dividend yield is 0.31%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 65.23.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 102.4, implying annual growth of 20.6%.
Current consensus DPS estimate is 18.7, implying a prospective dividend yield of 0.3%.
Current consensus EPS estimate suggests the PER is 68.8.

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

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