Australian Broker Call *Extra* Edition – Oct 04, 2023

This story features BRICKWORKS LIMITED, and other companies. For more info SHARE ANALYSIS: BKW

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)

BKW   BOQ   CAI   IPD   LIN   LTR   M7T   NUF   NXS   PMV (2)   QAN  

BKW    BRICKWORKS LIMITED

Building Products & Services – Overnight Price: $25.03

Jarden rates ((BKW)) as Neutral (3) –

A $395m full year result from Brickworks is a -54% decline year-on-year, Jarden has been quick to point out that the result is cycling off a record year.

Significant items totaling -$114m, as disclosed by the company, weighed on the result, the bulk of which was related to the exit of the company's loss-making Western Australian facility. 

The broker continues to see long-term value in the stock, noting the inferred asset per share valuation is almost double net tangible assets. The Neutral rating and target price of $28.75 are both retained.

This report was published on September 29, 2023.

Target price is $28.75 Current Price is $25.03 Difference: $3.72
If BKW meets the Jarden target it will return approximately 15% (excluding dividends, fees and charges).
Current consensus price target is $27.21, suggesting upside of 9.7%(ex-dividends)
The company's fiscal year ends in July.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 67.00 cents and EPS of 153.30 cents.
At the last closing share price the estimated dividend yield is 2.68%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 113.7, implying annual growth of -56.1%.
Current consensus DPS estimate is 63.5, implying a prospective dividend yield of 2.6%.
Current consensus EPS estimate suggests the PER is 21.8.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 69.00 cents and EPS of 214.60 cents.
At the last closing share price the estimated dividend yield is 2.76%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.66.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 149.4, implying annual growth of 31.4%.
Current consensus DPS estimate is 64.4, implying a prospective dividend yield of 2.6%.
Current consensus EPS estimate suggests the PER is 16.6.

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

BOQ    BANK OF QUEENSLAND LIMITED

Banks – Overnight Price: $5.66

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

Higher than expected restructuring costs are set to impact on Bank of Queensland's second half net profit, with the bank announcing a -$79m impact. 

Goldman Sachs was left disappointed by the lack of detail around the payback from these incremental costs, noting that the broker expects more detail to be provided with the full year result (later this month).

Having recently downgraded to a Sell rating on Bank of Queensland, the broker retains its rating but decreases its target price to $5.59 from $5.60.

This report was published on September 29, 2023.

Target price is $5.59 Current Price is $5.66 Difference: minus $0.07 (current price is over target).
If BOQ meets the Goldman Sachs target it will return approximately minus 1% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $6.37, suggesting upside of 14.1%(ex-dividends)
The company's fiscal year ends in August.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 EPS of 63.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.98.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 63.0, implying annual growth of -4.9%.
Current consensus DPS estimate is 41.4, implying a prospective dividend yield of 7.4%.
Current consensus EPS estimate suggests the PER is 8.9.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 EPS of 52.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.88.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 55.9, implying annual growth of -11.3%.
Current consensus DPS estimate is 42.4, implying a prospective dividend yield of 7.6%.
Current consensus EPS estimate suggests the PER is 10.0.

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

CAI    CALIDUS RESOURCES LIMITED

Gold & Silver – Overnight Price: $0.14

Canaccord Genuity rates ((CAI)) as Downgrade to Hold from Speculative Buy (3) –

Following challenges in grade reconciliation at the Warrawoona Gold project in WA, management at Calidus Resources has revised reserves and resources. Canaccord Genuity notes this project has disappointed since operations began in mid-2022.

The overall resource estimate has been decreased by -16% or 260koz compared to the September 2022 update while the reserve estimate has fallen by -37%. 

In some good news, the overall reserve grade has jumped to 2.1g/t Au from 1.4g/t Au, which the broker suggests will provide a
buffer should reconciliation or dilution issues persist.

Canaccord Genuity now risks its valuation 50% in line with other struggling early-stage producers under coverage and the target falls to 15c from 65c.

The rating is also lowered to Hold from Speculative Buy on valuation.

This report was published on September 29, 2023.

Target price is $0.15 Current Price is $0.14 Difference: $0.005
If CAI meets the Canaccord Genuity target it will return approximately 3% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 6.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 2.42.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of 3.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.83.

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

IPD    IMPEDIMED LIMITED

Medical Equipment & Devices – Overnight Price: $0.17

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

A tumultuous update on ImpediMed has outlined a Board spill for the company, following news that the company's long clinical trial campaign has proved successful in convincing the clinical community that "bioimpedance spectroscopy (BIS) should be used to monitor cancer survivors for early-onset lymphedema."

Wilsons is anticipating a modest device roll out across FY24, estimating 160 placements, and that Board changes will trigger a re-appraisal of commercial plans and investment settings. 

The Overweight rating and target price of $0.39 are retained. 

This report was published on September 29, 2023.

Target price is $0.39 Current Price is $0.17 Difference: $0.225
If IPD meets the Wilsons target it will return approximately 136% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY24:

Wilsons forecasts a full year FY24 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 20.63.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 0.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 82.50.

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

LIN    LINDIAN RESOURCES LIMITED

Aluminium, Bauxite & Alumina – Overnight Price: $0.20

Petra Capital rates ((LIN)) as Initiation of coverage with Buy (1) –

Lindian Resources has established its Malawi Kangankunde rare earths project as an emerging major project in the global sector, according to Petra Capital.

The company recently announced a maiden resource of 261m tonnes, already one of the largest and highest grade projects outside of China.

The broker notes potential for this resource to double as drilling commences. Given the lack of large operating mines in Malawi, the company is proceeding with a low-cost, low-risk development path minimising permitting, operating, financial and sales risk. 

The broker initiates with a Buy rating and target price of $0.66. 

This report was published on October 4, 2023.

Target price is $0.66 Current Price is $0.20 Difference: $0.455
If LIN meets the Petra Capital target it will return approximately 222% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY24:

Petra Capital forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 0.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 102.50.

Forecast for FY25:

Petra Capital forecasts a full year FY25 dividend of 0.00 cents and EPS of 2.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.54.

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

LTR    LIONTOWN RESOURCES LIMITED

New Battery Elements – Overnight Price: $2.95

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

With major contracts now awarded, Liontown Resources has updated financials for its Kathleen Valley project.

While Goldman Sachs describes capital expendiuture increases as modest, lifting to -$951m from -$895m, it points out additional works take total expenditure to -$1bn. 

The company is "well advanced" in discussions to meet final funding requirements, and expects to have a funding solution in place by the end of the calendar year. 

The Neutral rating is retained and the target price decreases to $1.35 from $1.40.

This report was published on October 2, 2023.

Target price is $1.35 Current Price is $2.95 Difference: minus $1.6 (current price is over target).
If LTR meets the Goldman Sachs target it will return approximately minus 54% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $3.03, suggesting upside of 2.0%(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 0.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 368.75.

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 N/A.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 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 491.67.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 11.1, 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 26.8.

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

M7T    MACH7 TECHNOLOGIES LIMITED

Healthcare services – Overnight Price: $0.77

Wilsons rates ((M7T)) as Initiation of coverage with Overweight (1) –

Mach7 Technologies might still be considered a new provider of Enterprise Imaging software, but the company has already established contracts with top Integrated Delivery Networks and imaging chains. 

Wilsons initiates coverage on Mach7 Technologies, ahead of what it considers to be an important year for the company. 

The broker considers Mach7 Technologies primed to beat expectations given upcoming contract renewals and a material catalyst in the outcome of the Phase 2 VA contract, due in early March and worth $48m. 

The broker initiates with an Overweight rating and a target price of $1.15.

This report was published on October 3, 2023.

Target price is $1.15 Current Price is $0.77 Difference: $0.38
If M7T meets the Wilsons target it will return approximately 49% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 0.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 85.56.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 0.00 cents and EPS of 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 77.00.

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

NUF    NUFARM LIMITED

Agriculture – Overnight Price: $4.63

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

Nufarm has issued updates to its full year guidance, expecting underlying earnings in the range of $430-440m. Wilsons finds this guidance range commendable in the current environement and amid downgrades from peers. 

The company appears to have benefitted from diversification, with strength in seed tehcnologies offsetting crop protection softness. 

The Market Weight rating and target price of $6.04 are retained. 

This report was published on September 28, 2023.

Target price is $6.04 Current Price is $4.63 Difference: $1.41
If NUF meets the Wilsons target it will return approximately 30% (excluding dividends, fees and charges).
Current consensus price target is $6.44, suggesting upside of 36.5%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 12.00 cents and EPS of 30.80 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 15.03.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 37.2, implying annual growth of 41.4%.
Current consensus DPS estimate is 10.1, implying a prospective dividend yield of 2.1%.
Current consensus EPS estimate suggests the PER is 12.7.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 16.00 cents and EPS of 32.80 cents.
At the last closing share price the estimated dividend yield is 3.46%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.12.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 39.2, implying annual growth of 5.4%.
Current consensus DPS estimate is 11.1, implying a prospective dividend yield of 2.4%.
Current consensus EPS estimate suggests the PER is 12.0.

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: $0.47

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

In the wake of first half results and a $18.5m capital raise, Canaccord Genuity lowers its target for Next Science to 60c from 85c.

The near-term outlook remains promising, notes the broker, with guidance suggesting strength through the durable medical equipment (DME) program. First half sales of US$10.1m in H1 were considered strong.

In the analyst's view, Xperience remains the most relevant and material longer-term commercial opportunity. Sales are currently growing, albeit off a small base, to around US$2m from 200 new hospital accounts.

The Buy rating is unchanged.

This report was published on September 29, 2023.

Target price is $0.60 Current Price is $0.47 Difference: $0.135
If NXS meets the Canaccord Genuity target it will return approximately 29% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 9.63 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 4.83.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 10.53 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 4.42.

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

PMV    PREMIER INVESTMENTS LIMITED

Apparel & Footwear – Overnight Price: $23.79

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

Premier Investments' full year result offered few surprises for Goldman Sachs being largely pre-announced. The company reported 9.7% year-on-year sales growth, with sales slowing in the second half to just 1.5% growth. 

While Premier Investments' discretionary spending exposure benefitted the company through covid, Goldman Sachs considers it likely that the company will suffer further margin pressures amid ongoing slowing of the economic environment. 

The Sell rating is retained but the target price increases to $21.50 from $21.30.

This report was published on September 28, 2023.

Target price is $21.50 Current Price is $23.79 Difference: minus $2.29 (current price is over target).
If PMV meets the Goldman Sachs target it will return approximately minus 10% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $25.27, suggesting upside of 7.5%(ex-dividends)
The company's fiscal year ends in July.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 116.00 cents and EPS of 153.00 cents.
At the last closing share price the estimated dividend yield is 4.88%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.55.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 147.4, implying annual growth of -13.5%.
Current consensus DPS estimate is 101.6, implying a prospective dividend yield of 4.3%.
Current consensus EPS estimate suggests the PER is 16.0.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 118.00 cents and EPS of 150.00 cents.
At the last closing share price the estimated dividend yield is 4.96%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.86.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 150.1, implying annual growth of 1.8%.
Current consensus DPS estimate is 110.8, implying a prospective dividend yield of 4.7%.
Current consensus EPS estimate suggests the PER is 15.7.

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

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Jarden rates ((PMV)) as Neutral (3) –

A largely preannounced full year result from Premier Investments left little to the imagination, with Jarden describing the 6% year-on-year retail earnings growth as good.  

While awaiting further detail on a strategic review, which looks likely to encompass more than just a demerging of the Smiggle and Peter Alexander brands, the broker sees potential for positive surprise. Jarden anticipates an update at the December annual general. 

The Neutral rating is retained and the target price increases to $24.50 from $23.00.

This report was published on September 29, 2023.

Target price is $24.50 Current Price is $23.79 Difference: $0.71
If PMV meets the Jarden target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $25.27, suggesting upside of 7.5%(ex-dividends)
The company's fiscal year ends in July.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 124.00 cents and EPS of 151.40 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 15.71.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 147.4, implying annual growth of -13.5%.
Current consensus DPS estimate is 101.6, implying a prospective dividend yield of 4.3%.
Current consensus EPS estimate suggests the PER is 16.0.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 127.00 cents and EPS of 156.50 cents.
At the last closing share price the estimated dividend yield is 5.34%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.20.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 150.1, implying annual growth of 1.8%.
Current consensus DPS estimate is 110.8, implying a prospective dividend yield of 4.7%.
Current consensus EPS estimate suggests the PER is 15.7.

Market Sentiment: 0.0
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: $5.02

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

Jarden points out Qantas Airways has ceded market share to competitors in the North American market compared to pre-covid, with Qantas Airways and American Airlines suffering a combined -3% share loss as the United Airlines-Virgin Australia partnership gained 17%.

The EMEA market has also seen a sizeable market share shift, with Qatar's seat share rising to 37% from 26-27%. The broker suggests this leaves potential for greater competitive intensity on Middle East and EMEA routes for Qantas. 

The Overweight rating and target price of $6.90 are both retained.

This report was published on September 29, 2023.

Target price is $6.90 Current Price is $5.02 Difference: $1.88
If QAN meets the Jarden target it will return approximately 37% (excluding dividends, fees and charges).
Current consensus price target is $7.60, suggesting upside of 53.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 0.00 cents and EPS of 85.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.90.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 104.9, implying annual growth of 9.2%.
Current consensus DPS estimate is 1.7, implying a prospective dividend yield of 0.3%.
Current consensus EPS estimate suggests the PER is 4.7.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 49.30 cents and EPS of 95.10 cents.
At the last closing share price the estimated dividend yield is 9.82%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.28.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 109.7, implying annual growth of 4.6%.
Current consensus DPS estimate is 25.8, implying a prospective dividend yield of 5.2%.
Current consensus EPS estimate suggests the PER is 4.5.

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

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